Answer the following statement(s) true (T) or false (F)
1. The spot market is the market for goods that are to be delivered at a particular location, or “at that spot”.
2. There are three types of decision makers in a market economy, consumers, firms and resource suppliers.
3. Tastes and preferences are relevant to individual choices for consumption but not relevant to choices for supplying labor.
4. An individual's indifference curves between labor and consumption are upward sloping because both are desired.
5. Higher wages always cause a worker to increase the quantity of labor supplied.
1. True
2. False
3. False
4. False
5. False
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In most business situations where firms compete, often they can escape the prisoner's dilemma and reach the most profitable outcome. Which of the following is a reason for this?
A) Most games are repeated games and firms can employ retaliation strategies against those who do not cooperate. B) Most games are one-shot games so firms learn from their mistakes. C) Firms are constantly improving their products and anticipating changing consumer tastes. D) Firms engage in aggressive advertising to overcome the barriers to loyalty.
Major contributors to pollution are
a. individuals. b. firms. c. government. d. All of the above are correct.