Using the supply and demand curve for wheat above, sketch the supply and demand curves demonstrating the effect of an increase in disposable consumer incomes
How does each curve shift (if at all) to the increase in income? What does the shift do to equilibrium price and quantity?
An increase in I will increase the demand for wheat (shift to the right). This increases equilibrium price and increases equilibrium quantity.
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In Econland autonomous consumption equals 200, the marginal propensity to consume equals 0.9, net taxes are fixed at 100, investment is fixed at 200, government purchases are fixed at 300, and net exports are fixed at 50. Short-run equilibrium output in this economy equals:
A. 6600 B. 850 C. 7500 D. 5000
Which of the following can be a source of comparative advantage?
A) Prices of finished goods B) The demand for goods in the global market C) Climatic conditions D) The demand for the goods in the domestic market
Describe the prisoners' dilemma game and explain why the Nash equilibrium delivers a bad outcome for both players
What will be an ideal response?
Waiting in line to get a free ticket does not involve any opportunity cost
a. True b. False Indicate whether the statement is true or false