Biology Forums - Study Force

When there few close substitutes available for a good, demand tends to be
 
  A) relatively elastic. B) perfectly elastic. C) relatively inelastic. D) perfectly inelastic.

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Ques. 2

Refer to Figure 10-6. The market is in equilibrium. If the government budget deficit rises, which of the following would you expect to see?
 
  A) The budget deficit will have no impact on the quantity of loanable funds demanded by firms.
  B) The quantity of loanable funds demanded by firms will rise above 120 million.
  C) The interest rate will fall below 4 percent.
  D) The quantity of loanable funds demanded by firms will fall below 120 million.

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Ques. 3

Suppose a player has a dominant strategy. Would she choose to play a mixed strategy (such as playing two strategies with probability 50-50)? Why or why not?
 
  What will be an ideal response?

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Ques. 4

When trade is free (unimpeded by government-instituted barriers) how are the patterns of trade and trade flows determined?
 
  What will be an ideal response?

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Ques. 5

How does the decreasing use of DVD players affect the market for prerecorded DVDs?
 
  A) The demand curve for prerecorded DVDs shifts to the left.
  B) The quantity of prerecorded DVDs demanded decreases.
  C) The quantity of prerecorded DVDs demanded increases.
  D) The demand curve for prerecorded DVDs shifts to the right.

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Ques. 6

The total amount of consumer surplus in a market is equal to the area below the demand curve.
 
  Indicate whether the statement is true or false

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Ques. 7

Why does a consumer spend the entire budget?
 
  What will be an ideal response?

(Answer to Q. 1)  C

(Answer to Q. 2)  D

(Answer to Q. 3)  A dominant strategy is one best response to every possible strategy of the other player. A game with mixed strategies implies that the best action is to not choose any particular strategy. This means that, in a game with mixed strategies, neither player has a dominant strategy.

(Answer to Q. 4)  The patterns of trade and trade flows result from the independent decisions of thousands of importers and exporters and millions of private households and firms.

(Answer to Q. 5)  A

(Answer to Q. 6)  FALSE

(Answer to Q. 7)  The more goods and services a person consumes, the higher the person's utility. By spending his or her entire budget, the person is consuming the maximum quantity of goods and services, which means the utility can be at its maximum.

I can't even begin to explain how much your help meant to me.

Happy to hear that, good luck with the rest of them