If a model assumes that people take into account other people's interests, it is probably a:
A. traditional model.
B. natural model.
C. heuristic model.
D. behavioral model.
Answer: D
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Describe the structure of the Fed's Open Market Committee (FOMC). What is this committee's primary responsibility?
What will be an ideal response?
A negative income tax does not
A. increase work incentives for those who receive cash payments. B. increase work incentives for those who do not receive cash payments. C. affect incentives for the poor but affects incentives for low earners who are not poor. D. affect incentives, which is why it is efficient.
During an expansion, tax revenues ... and government transfer payments ...
What will be an ideal response?
Refer to the cost table below. If a competitive firm faced with these costs finds that it can sell its product at $60 per unit, it will:
A. Produce 5 units and incur a loss of $50
B. Produce 6 units and incur a loss of $30
C. Produce 7 units and realize a profit of $32
D. Close down in the short run