At a zero price, which of the following conditions is TRUE for an economic good?
A) Its quantity supplied exceeds its quantity demanded.
B) Its quantity demanded exceeds its quantity supplied.
C) Its quantity demanded equals its quantity supplied.
D) Scarcity disappears.
Answer: B
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Other things the same, if the price level is higher than expected, then some firms believe that the relative price of what they produce has
a) increased, so they decrease production. b) decreased, so they increase production. c) decreased, so they decrease production. d) increased, so they increase production.
A Nash equilibrium occurs when each player in a game takes the ________ given the action of the other player
A) worst possible action for himself or herself B) best possible action for himself or herself C) most unpredictable possible action D) most mutually beneficial possible action E) best possible action for the other player