Answer the question on the basis of the following data. All figures are in billions of dollars. Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Consumption of fixed capital is:
a) $5.
b) $10.
c) $20.
d)$30.
a) $5.
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To correct for the underproduction of products with positive externalities, the government must
A) provide the incentives for the private sector to produce and consume the good. B) provide tougher regulations on the industry. C) increase taxes on the industry. D) fine the industry.
The twelve district banks of the Federal Reserve System were created to decentralize power and to respond to the public's fears of the monopoly power of a single central bank such as the Bank of England or the Bank of Japan
a. True b. False Indicate whether the statement is true or false
Kuan-yin is using anchoring to try to improve sales at her doughnut shop. Which of the following advertisements uses anchoring in an effective way?
a. “Cake doughnuts are $3 each, or buy two for $5.” b. “Mix and match Long Johns and crullers, all for $2 each.” c. “Cronuts are just $4—the only ones you’ll find in town!” d. “Nobody sells glazed doughnuts for less. Just $1.50!”
Laboratory experiments of the ultimatum games revealed that
A) participants' actions were always part of a Nash equilibrium. B) participants always split the money equally. C) the first mover always kept the smaller share. D) the first mover always kept the largest share.