A Prisoners Dilemma illustrates the fact that
a. Rational choices can lead to inefficient outcomes
b. Rational choices always leads to good outcomes
c. Rational choices always lead to inefficient outcomes
d. None of the above
a
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The problem with the separation of ownership from control is that
A) the owner in a proprietorship may not always act in the profit-maximizing fashion because he or she may not have the experience or expertise that professional managers have. B) the managing partner of a firm may not always behave in the way that other managers would if they were the managing partners. C) the managers of the firm can make decisions that reduce the wealth of the owners while not reducing their own wealth. D) the owners of firms may not always know the best way to run a firm, yet they are the ones who elect the managers of the firm.
Which of the following would be most likely to cause a reduction in the supply of Nintendo video games?
a. a decrease in the price of Nintendo video games b. a decrease in the price of computer chips used to make Nintendo games c. an increase in the demand for Nintendo video games d. an increase in the price of computer chips used to make Nintendo games
If the inflation rate is rising, which one of the following would the Fed need to do to reduce the inflation rate?
A. Reduce reserve requirements B. Reduce margin requirements C. Encourage more discount borrowing D. Increase the federal funds rate
An oil price increase would
A. increase short-run aggregate supply. B. decrease aggregate demand. C. decrease short-run aggregate supply. D. increase aggregate demand.