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All natural,, human, and manu factured re sour ces tha t go into the pro ducti on of g oods and ser vices. Allocation Economic Resources Productive Process Economic Power

& & Town Henald & Increase Subscription Price & & Do Not Change Subscription Price & 200, 700 Daily Voice & }(c) Do Not Change Subscription Price Increase Subscription Price & 500, 400 & 300, 100 The two major newspapers in a city, Daily Voice and Town Horals are considering whether to raise the subscription price. The first entries in the matrix above show the profits to Daily Voice, and the second entries show the profits to Town Horals. Which of the following is consistent with the above payoff matrix? (A) Do Not Change Subscription Price is a dominant strategy for Daily Voice. (B) Do Not Change Subscription Price is a dominant strategy for Town Horals. (C) Increase Subscription Price is a dominant strategy for Daily Voice. (D) Increase Subscription Price is a dominant strategy for Town Herald. (E) There are no dominant strategies in the above payoff matrix.

Which factor is a major advantage of free enterprise economies compared with centrally planned economies: Slower rate of change in business cycles Greater variety in consumer choice More equitable distribution of goods More extensive social welfare programs

Lesson Quiz 13 -I Economic Instability DIRECTIONS: Modified True/False In the blank ,Indicate whether the statement is true (I)or false (F). If false, edit the statement to make it a true statement. __ 1. An econometric model is used to describe how the economy is expected to perform in the near future. __ 2. A statistical series that normally turns down after the economy turns down or turns up after I the economy turns up Is a leading economic Indicator. __ 3. The depression scrip is an index of 30 representative stocks used to monitor price changes in the overall stock market. __ 4. A business cycle begins when the economy reaches a low and begins to climb out of a recession. __ 5. The bursting of the housing bubble in 2006-2007 negatively affected consumer buying power and was largely responsible for the Great Recession in 2008-2009.

Which of these is NOT a hidden cost of work-related stress? Higher rates of accidents Increased insurance premiums Presenteeism Improved employee relations