A model with coordination failures has
A) agents that do not act rationally.
B) multiple equilibria.
C) a government that is too large.
D) a tax rate that is too high.
B
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If the demand in a perfectly competitive market decreases, the price will:
A. temporarily increase. B. increase permanently. C. temporarily decrease. D. decrease permanently.
In the long run, when marginal cost is above average total cost, the average total cost curve exhibits
a. economies of scale. b. diseconomies of scale. c. constant returns to scale. d. efficient scale.
We run a trade ________ on goods and a trade _________ on services.
A. deficit; deficit B. surplus; surplus C. surplus; deficit D. deficit; surplus
Which of the following is the best example of causation? (versus correlation)?
A. Oil prices go up and gasoline prices go up. B. Women's skirts get shorter and the stock market goes up. C. The groundhog sees its shadow and winder lasts longer. D Ice cream sales and the number of drownings.