Other things equal, if a full-employment economy reallocated a substantial quantity of its resources to capital goods, we would expect:
A. labor productivity to rise.
B. present consumption to rise.
C. a lower rate of growth of real GDP.
D. future consumption to fall.
Answer: A
Economics
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When a price support is set above the equilibrium price, producers ________ the quantity supplied and consumers ________ the quantity demanded
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) do not change; do not change
Economics
Consider the game between the teens from the previous question. The pure-strategy Nash equilibrium is (equilibria are)
a. Both Declare. b. Both Ignore/Rebuff. c. There are two: in one, both Declare, and in the other, both Rebuff/Ignore. d. There are two: in both, the teens do the opposite of each other.
Economics