An economic benefit of contracts is that they
a. protect property rights
b. encourage involuntary exchanges
c. reduce the number of possible Pareto improvements
d. encourage market concentration
e. encourage specialization
E
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The Federal Reserve Board of Governors consists of:
a. 50 members selected by state legislatures. b. 12 members, one from each Federal Reserve District. c. 12 members nominated by the President and confirmed by the Senate. d. seven members elected by Congress. e. seven members nominated by the President and confirmed by the Senate.
You are in charge of the local city-owned aquatic center. You need to increase the revenue generated by the aquatic center to meet expenses. The mayor advises you to increase the price of a day pass. The city manager recommends reducing the price of a day pass. You realize that
a. the mayor thinks demand is elastic, and the city manager thinks demand is inelastic. b. both the mayor and the city manager think that demand is elastic. c. both the mayor and the city manager think that demand is inelastic. d. the mayor thinks demand is inelastic, and the city manager thinks demand is elastic.
If you are assigned the role of Player A in the Ultimatum game and you propose that player B gets $1 and you get $99
a. you are behaving as a rational wealth-maximizer and player B is likely to accept your offer. b. you are behaving as a rational wealth-maximizer and player B is likely to reject your offer. c. you are not behaving as a rational wealth-maximizer and player B is likely to accept your offer. d. you are not behaving as a rational wealth-maximizer and player B is likely to reject your offer.
Which of the following is not included in GDP?
a. a can of bug spray b. the services of an exterminator c. the honey produced and sold by a beekeeper d. All of the above are included in GDP.