Pure private goods are nonrival in consumption.
A. True
B. False
C. Uncertain
A. True
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Rising inflation causes quantity demanded to decline, because ________
A) the central bank raises the nominal interest rate by more than the increase in expected inflation B) households and businesses are reluctant to spend when prices rise C) higher inflation causes the IS curve to shift to the left D) all of the above E) none of the above
The time-inconsistency problem involves the ________
A) difficulties of traveling across time zones B) tendency to deviate from good long-run plans in the short-run C) use of adaptive expectations in building an economic model D) time lag between the implementation of policy and its ultimate and complete results
Which of the following can act as a substitute for information?
a. Social networking b. Knowledge gathered through past experience c. Ability to postpone a choice d. Forecasts and predictions
Hamid spends an hour studying instead of watching TV with his friends. The opportunity cost to him of studying is
a. the improvement in his grades from studying for the hour.
b. the improvement in his grades from studying minus the enjoyment of watching TV.
c. the enjoyment he would have received if he had watched TV with his friends.
d. zero. Since Hamid chose to study rather than to watch TV, the value of studying must have been greater to him than the value of watching TV.