Evan knows his GPA would skyrocket if he could break his horrible habit of procrastinating. An example of a commitment device Evan could use would be:
A. to allow himself one hour of leisure for every half-hour of studying he does each day.
B. to exercise before studying in order to be refreshed.
C. to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day.
D. All of these are commitment devices.
C. to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day.
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Economists assume that business firms attempt to maximize their profits.
Answer the following statement true (T) or false (F)
Suppose Phillips and Mathew are the only tenants in a building. The owner of the building is considering installing surveillance cameras in the building
The following table shows the amount that Phillips and Mathew are willing to pay for each additional camera: Number of Surveillance Cameras Phillips's Willingness to Pay Mathew's Willingness to Pay 1 $400 $300 2 $310 $200 3 $210 $110 4 $80 $30 If the cost of installing each surveillance camera is $320, how many cameras will the owner of the building install to maximize welfare?
Which of the following government activities is motivated by a concern about efficiency? Check all that apply.
A. Breaking up Standard Oil (which once owned 90% of all oil refineries) into several smaller companies B. Imposing higher personal income tax rates on people with higher incomes C. Providing some poor people with vouchers that can be used to buy food D. Regulating cable TV prices E. Prohibiting smoking in public places F. Instituting laws against driving while intoxicated
An advantage of automatic stabilizers is that this type of fiscal policy
A. requires precise knowledge of full-employment real GDP. B. can be influenced by special interest groups when their concerns are valid. C. is not subject to lag time problems. D. accelerates the direction in which the economy is moving at the time.