When current production of goods and services in an economy is greater than planned aggregate expenditure
What will be an ideal response?
inventories of goods and services will increase
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Assume there are three players in a game, Tom, Dick, and Harry, and all three want to meet up at either at the Library or the Student Union, no player knows with certainty where the other two will go, and they will consider their mission a failure if
all three do not meet at the same location. Use a series of "if-then" statements to describe Tom's ideal strategies based on the possible choices of Dick and Harry. Explain if Tom has a dominant strategy?
The basic cause of deadweight losses from the existence of common resources and externalities is
A) the use of a market system to deal with scarcity. B) the self-interested rationality of human beings. C) the absence of government intervention. D) a lack of clearly defined and enforceable property rights.
A business enterprise that allows the hiring of nonunion members conditional on their joining the union is
A) a closed shop. B) a union shop. C) a jurisdictional dispute. D) an industrial union.
A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company will likely
a. Not do anything-it is prohibited by law to increase its price b. Bundle the drug with periodic blood testing, selling the bundle for $10,000 c. Require that the patients have the drug administered by the company's medical staff, for an additional $5,000 d. Both B&C