A higher real interest rate typically induces consumers to:
a. Save less
b. Purchase more imported goods
c. Save more
d. Purchase more goods that are bought using credit
c. Save more
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If Microsoft wanted to prove to the Justice Department that its Windows software has many substitutes that personal computer owners can use, Microsoft hopes to find
A) that the demand for Windows is inelastic. B) that the demand for Windows is elastic. C) a large positive value for the cross elasticity of Windows and other software. D) a negative income elasticity for Windows. E) a positive income elasticity for Windows.
Russia chose a slow approach to creating a private economy and China chose a fast approach
Indicate whether the statement is true or false
Refer to the payoff matrix below. Which of the following is the pure -strategy Nash Equilibrium?
A) Set High Price/Set Low Price
B) Set Low Price/Set High Price
C) Set High Price/Set High Price
D) Set Low Price/Set Low Price
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry