Would the customer be able to convince the shopkeeper that he would walk out if he receives a high price?
a. Yes, because walking out is most profitable move for the customer
b. No, because walking out is an unprofitable strategy for the customer
c. No, because walking out is not a credible threat
d. Both B&C
d
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Changes in the short-run total costs result from changes in only
A) variable costs. B) fixed costs. C) zero. D) total fixed costs.
Suppose the economy includes two distinct groups of people: wage earners and goods sellers. If the price level falls by 10 percent and nominal wages remain unchanged,
a. there will be no redistribution of purchasing power because all wage earners in the U.S. economy receive indexed wages b. income will be redistributed from wage earners to goods sellers c. income will be redistributed from goods sellers to wage earners d. real wages will fall by 10 percent e. real wages will remain unchanged