If the government seizes Lucy's property and resells it to Ethel,
A) Lucy and Ethel collectively capture the resulting gains.
B) Lucy captures the resulting gains.
C) Ethel captures the resulting gains.
D) Neither Lucy nor Ethel capture any resulting gains.
C
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Refer to Figure 8.1. If Charla and Mirna agree to pay each other $350 to install the pollution-control device on their heating systems, the Nash equilibrium would be found when Charla plays ________ and when Mirna plays ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
Which of the following measures did the Fed take during the financial crisis of 2008? a. The Fed lowered the discount rate and paid interest on reserves held at the Fed. b. The Fed increased the reserve requirement ratio
c. The Fed sold all government securities. d. The Fed decreased its spending. e. The Fed increased the discount rate.
The use of expensive cars and yachts to impress others rather than just as transportation is an example of what economists call:
A. bounded rationality. B. conspicuous consumption. C. rules of thumb. D. focal point equilibrium.
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to rational expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 105 and then remain at 105. B. directly from 100 to 110 and then remain at 110. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.