When the Chairman of the Board of Governors explains in a television interview that the Fed hopes banks show more restraint in providing consumer credit because inflation is a problem, he is attempting to use
a. indirect theory instead of direct policy
b. reason over passion in money matters
c. selective media information
d. moral suasion
e. the paradox of thrift
D
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Which of the following statements about commission systems of compensation is false?
A) During sluggish periods, an employer's payroll expenses will decline along with sales. B) If workers are paid on the basis of the number of units produced, they may become less concerned about quality. C) They increase the risk to workers because sometimes output declines for reasons not connected to the worker's effort. D) The lack of income stability will induce the more productive workers to leave in search of more secure employment.
In 2008, net exports in the U.S. were
a. $1,831 billion. b. -$2,539 billion. c. -$900 billion. d. -$1,500 billion. e. -$708 billion.
A consumer can be said to have achieved equilibrium with respect to consumption when:
a. the marginal utility of each product consumed is the same. b. the last dollar spent on each product yields the same marginal utility. c. the total utility of each product consumed is at a maximum. d. the marginal utility of each product consumed is at a maximum.
Refer to the following payoff matrix:Player 1Player 2??Low QHigh Q?Low Q$50,$5$15,$30?High Q$40,$2$2,$1Suppose the production game depicted in the payoff matrix is a sequential-move game. Identify the strategy leading to a first-mover advantage for player 2.
A. Player 2 moves first and plays Low Q. Observing player 2's move, player 1's best response is to play Low Q. B. Player 2 moves first and plays High Q. Observing player 2's move, player 1's best response is to play Low Q. C. Player 2 moves first and plays High Q. Observing player 2's move, player 1's best response is to play High Q. D. Player 1 moves first and plays Low Q. Observing player 1's move, player 2's best response is to play High Q.