Which of the following statements is true?
A) Bad weather isn't always that bad for farmers' incomes.
B) An individual farmer would probably increase his revenues if he experienced good weather and other farmers experienced bad weather.
C) Price elasticity of demand is a relevant factor to a farmer's income.
D) a and b
E) a, b, and c
E
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In many developing countries, starting a business involves navigating a labyrinth of rules and regulations and red tape. Paying a bribe to expedite paperwork is a common practice
As Samuel Huntington puts it—"the only thing worse than a society with a rigid, overcentralized, dishonest bureaucracy is one with a rigid, overcentralized, honest bureaucracy." The argument is that bribes increase economic activity because, without bribes to grease bureaucrats' palms, starting a business would be an extremely long, drawn-out process and would probably drive investors away. Is this always the case, or does bureaucratic corruption involve other costs? Explain your answer.
The discount rate's main significance is that: a. changes in the rate are commonly viewed as a signal of the Fed's intentions with respect to monetary policy. b. changes in the rate are a sign that monetary policy has swung strongly in a new direction
c. it can be done quietly, without a lot of political debate or a public announcement. d. a small change in the rate can make a huge change in the number of dollars that are in excess reserves in banks all over the country.
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
This game:
A. is not a prisoner's dilemma. B. has no Nash equilibrium. C. is a prisoner's dilemma. D. is an ultimatum bargaining game.
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower