Test I

4. This is a strategy of firms to sell the same good to different customers for different prices, even though the costs of producing for the two customers are the same.
5. The trend path of ___ is the path that it would take if factors of production were fully employed.
7. A situation in which economic actors interacting with one another, each choose their best strategy given the strategies that all other actors have chosen.
10. This is the rate of change in prices, and the price level is the cumulation of past inflations.
12. Suppose that there is an increase in foreign investors leading to more labor demands under an unemployment disequilibrium. It will lead to a decrease in __ unemployment which causes the initial wage rate to increase.
13. If the firm is a perfectly competitive firm, the price of the good equals both the firm's ___ revenue and its marginal revenue.
14. When a firm faces a less elastic demand curve, it can increase its profits by charging a larger___ over the marginal costs if it is under a monopolistically competitive firm.
15. This unemployment signifies mismatch between the supply of and the demand for workers.

1. Firms under monopolistically competitive market are said to be operating in ____ because it its more profitable for them.
2. Unlike a competitive firm, a monopoly firm’s price exceeds its marginal revenue, so its price is greater than the _____.
3. The socially ___ quantity is found where the demand curve and the marginal costs curve meets.
6. When labor supply or demand changes due to _____wages , the reaction is primarily in labor rather than wages.
8. The market ___ curve provides a constraint on a monopoly's ability to profit from its market power.
9. The prisoners’ dilemma shows that self-interest can prevent people from maintaining ______, even when it is in their mutual interest.
11. The excess of the private sector’s saving over investment is equal to the sum of the budget deficit ____.