Warren Buffett feared gaining weight. To keep himself from eating too much, he gave unsigned checks for $10,000 to his children, promising to sign them if he exceeded his desired weight by a certain date. This is an example of:
A. sunk costs.
B. an abductive decision.
C. an inductive decision.
D. a precommitment strategy.
Answer: D
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The three most important international financial centers today are
A) London, Tokyo, and Beijing. B) Tokyo, London, and New York. C) New York, Los Angeles, and London. D) San Francisco, Paris, and Mexico City.
The way in which a country benefits from trade is that it can
a. obtain goods at lower opportunity cost than producing them itself. b. exploit economies of scale in production and lower the cost of goods it produces. c. obtain a wider range of goods than it can produce for itself. d. All of the above are benefits.
In games, strategies are:
A. the outcomes players want to achieve. B. the plans of action that players follow to achieve their goals. C. the same for everyone to achieve the same goal. D. All of these statements are true.
Automatic stabilizers
A. include legislation making them more effective. B. require legislation by congress to be made effective. C. help smooth out the business cycle. D. simultaneously stabilize the economy and tend to reduce the size of the public debt.