Refer to the scenario above. Which of the following would have happened if the government had decided to provide an export subsidy on these cash crops?
A) The volume of exports would have decreased.
B) The government's revenue would have increased.
C) Domestic producers would have been better off.
D) Domestic consumers would have been worse off.
C
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The table above shows the payoff matrix offered to two suspected criminals, Bonnie and Clyde. The payoffs are the years they will spend in prison. The suspected criminals are not allowed to communicate
Given the information in the payoff matrix, the Nash equilibrium is that Bonnie ________ and Clyde ________. A) confesses; denies B) confesses; confesses C) denies; denies D) denies; confesses E) denies; either confess or denies, either outcome is consistent with the Nash equilibrium.
In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period, the growth rate of the ________ decreased before ________ decreased
A) money supply; interest rates B) money supply; output C) budget deficit; interest rates D) budget deficit; output
Scarcity implies that people must
A. make choices. B. be selfish. C. earn as much as income as they are able to. D. be irrational.
Adverse selection occurs when
A) a person takes more risks that are not known to the life insurance company because he has life insurance. B) a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company. C) a person is a risk lover. D) pregnant women with health insurance make more doctor visits than uninsured pregnant women.