Which of the following is a behavioral implication of bounded rationality?
A) unbounded selfishness
B) a rule of thumb
C) a rational mistake
D) a nervous breakdown
Answer: B
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What was the Industrial Revolution? How did it contribute to modern economic growth?
What will be an ideal response?
In macroeconomics, it is impossible to include many individual markets in a single data source
a. True b. False
The accompanying figure shows the production possibilities curve for the island of Genovia:
The opportunity cost of producing a car in Genovia is:
A. 50 tons of agricultural products. B. 5 tons of agricultural products. C. 5,000 tons of agricultural products. D. 500 tons of agricultural products.
When the Fed sells a security to a financial firm and the Fed agrees to buy back the security the next day, the transaction is known as
A) a repurchase agreement. B) a reverse repurchase agreement. C) an open market flip-flop. D) a federal funds swap.