Suppose that a major natural disaster destroys a large part of a country's capital stock but miraculously does not cause anybody bodily harm. What will happen to the real wage rate?
A. It will not change.
B. It will rise.
C. It will fall.
D. It could rise or fall.
Ans: C. It will fall.
Economics
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Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is
A) q1 = (a - bq2 )/2b. B) q1 = (a - 2bq2 )/2b. C) q1 = a/b. D) q1 = a/2b.
Economics
When private ownership rights are well-defined and enforced, owners of physical assets and resources will have an incentive to do which of the following?
What will be an ideal response?
Economics