A person is dynamically inconsistent if:
A. lapses in self-control never occur.
B. his preferences over the alternatives available at some future date do not change as the date approaches or once it arrives.
C. he does not always follow through on his plans and intentions.
D. All of these are sufficient for dynamic inconsistency.
C. he does not always follow through on his plans and intentions.
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Suppose that Firestone Tires buys raw rubber for $5,000 and then uses this to make tires it sells for $20,000 . As a result, GDP has risen by:
a. $20,000 b. $5,000 c. $15,000 d. $25,000
Which of the following will cause the LM curve to shift down?
A) a reduction in the expected future interest rate B) a reduction in current income C) a reduction in expected future taxes D) all of the above E) none of the above
Assuming all else equal, if ________, net exports are positive
A) exports exceed transfer payment B) imports exceed exports C) imports exceed transfer payments D) exports exceed imports Lawland imports cell phones worth $1,000 billion, and exports coffee worth $820 billion in a year.
Adam Smith used the term commercial society to refer to a society in which
A) business interests control the political system. B) everyone identifies value with price. C) everyone lives by exchanging. D) increased income is everyone's principal life goal. E) people behave without regard for the interests of others.