What might explain a professional baseball player having lower production the year after signing a multimillion dollar contract?
A) the substitution effect
B) the endowment effect
C) bounded rationality
D) the income effect
D
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Use the following table to answer the next question.YearReal GDPPopulation2008$20,000200200940,000400201060,000400201170,000500Real GDP per capita is highest in which year?
A. 2009 B. 2010 C. 2008 D. 2011
Following the war-time prosperity for capital and the rich during World War I (1914–18), income distribution trended towards greater equality when peace came and market forces replaced the economy's wartime concerns in determining income
distribution. Indicate whether the statement is true or false
If the demand for coffee makers increases,
a. the quantity demanded will decrease. b. equilibrium price will increase and equilibrium quantity will decrease. c. equilibrium price will decrease and equilibrium quantity will increase. d. quantity supplied will increase. e. quantity supplied will decrease.
John and Jane decide to go on a vacation. As a result, they withdraw $2,500 from their savings account to purchase $2,500 worth of traveler's checks. As a result of these changes,
a. M1 increases by $2,500 and M2 decreases by $2,500. b. M1 increases by $2,500 and M2 stays the same. c. M1 and M2 stay the same. d. M1 decreases by $2,500 and M2 increases by $2,500.