If your marginal propensity to consume is 0.8, how much more would you have to make in disposable income in order to save $10,000?
a. $12,500
b. $20,000
c. $50,000
d. $80,000
c. $50,000
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Consider the simultaneous choice game represented by the matrix below where Player A chooses either Up or Down and Player B chooses either Left or Right.
i. Discuss whether or not either player has a dominant strategy.
ii. Identify the Nash equilibrium in the game and explain why you have concluded that it is a Nash Equilibria.
iii. Now imagine that the game could be played sequentially. If Player A gets to choose their strategy first, can they do better than in the sequential game than in the equilibrium from the simultaneous game? Explain.
Suppose a nation opens up to free trade and becomes an exporter of goods. Which of the following is then true?
A) The nation as a whole suffers losses. B) Sellers lose. C) Buyers lose. D) Buyers gain.
Important sources of conflict in colonial America include conflicts between all of the following except
(a) Slaves and masters (b) Native Americans and colonists (c) Puritans, Roman Catholics, and Protestants (d) Indentured servants and masters
Suppose you want to get to Orlando, Florida, for the week-long spring break. You can get there in two and one-half days by bus, and back in another two and one-half days. This will cost you $20 round-trip. You can fly there and back in four hours each way. This will cost $200 . Which of the following is not true?
a. It may be economically rational for you to go by plane rather than by bus. b. Depending on what else you can do that week, it may be economically rational for you to not go at all rather than to go by bus. c. The true cost of going to Orlando is either the time or the money you spend traveling, whichever it is you value more. d. The more you'd enjoy Orlando, the more economically rational it becomes for you to fly there instead of taking the bus. e. It is possible that it is rational for you to fly and rational for others to take the bus.