A game in which players as a group gain at the end of the game is referred to as
A) zero-sum game.
B) negative-sum game.
C) positive-sum game.
D) tit-for-tat game.
Ques. 2In the above figure, assume the economy is in equilibrium at point d. Then the Fed decreases the money supply so that the new aggregate demand curve is AD1. In the long run, the new price level will be
A) 100.
B) 120.
C) 130.
D) 110.
Ques. 3The reason that patents are granted is
A) to encourage a high rate of consumption.
B) to protect new techniques developed through research and development.
C) to encourage free trade.
D) to increase the labor force.
Ques. 4In the short run, real GDP can increase beyond a level consistent with the long-run growth path if
A) existing capital and labor are used more intensely.
B) the price level decreases accordingly.
C) we measure in nominal terms instead of real terms.
D) there is an increase in marginal tax rates.
Ques. 5Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?
A) P5, Q1
B) P3, Q3
C) P2, Q1
D) P1, Q4
Ques. 6The demand curve faced by a monopolistically competitive firm is
A) horizontal.
B) vertical.
C) downward sloping.
D) upward sloping.
Ques. 7A negative slope
A) represents an inverse relationship, such as beers consumed and test score.
B) represents a direct relationship, such as snow fall and car accidents.
C) indicates that there is no relationship between two variables, such as women's wages and likelihood of sunshine.
D) means that the line crosses below the x-axis.
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