Using the Keynesian model, the effect of an increase in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run

If the production possibilities frontier between two goods were a straight line, then the opportunity cost of one good in terms of another would be

A) constant. B) increasing. C) decreasing. D) zero. E) either constant, increasing, or decreasing but more information is needed to determine which.

Which of the following is an example of a way in which an oligopolistic firm can escape the prisoner's dilemma?

A) advertising that it will match its rival's price B) ignoring the pricing decisions of the other firms C) producing more of its product D) reneging on a previous tacit agreement with rival firms to charge identical high prices