Refer to Figure 17-2. Suppose the economy is at point A in the figure above. Which of the following is true?
A) The current unemployment rate is 3.8%
B) Actual Inflation is 1%
C) The current unemployment rate is equal to the natural rate of unemployment
D) The Economy will move from A to B
E) The expected rate of inflation is 5.5%
Answer: C) The current unemployment rate is equal to the natural rate of unemployment
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The table above shows the payoff matrix for a prisoners' dilemma game. The Nash equilibrium is that
A) both prisoners do not confess. B) both prisoners confess. C) prisoner A confesses while prisoner B does not confess. D) prisoner A does not confess while prisoner B confesses.
What economist in the early 20th century refined the use of the equation of exchange?
A) Jean-Baptiste Say B) Irving Fisher C) Thomas Malthus D) Adam Smith
What type(s) of individual will always choose a risk-free basket when offered a bet at fair odds?
a. A risk-neutral individual. b. A risk-averse individual. c. A risk-preferring individual. d. Risk-neutral and risk-averse individuals.
Refer to the figure below. The socially optimal quantity in this market could be achieved by imposing a ________ equal to the vertical distance ________.
A. tax; LM B. subsidy; LM C. tax; LN D. subsidy; LN