In an open economy, the government deficit is 400 and investment exceeds saving by 300, so in equilibrium the trade deficit (IM? X) must be
A. 100
B. 200
C. 300
D. 700
Answer: D
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Which of the following would be considered a "leisure" activity by economists?
A. Mopping the floor at McDonald's for minimum wage B. Mopping your kitchen floor C. Folding sweaters while working at the Gap D. None of these activities would be considered leisure.
According to the ____ view, a nation's wealth consists of the amount of gold or other monies at its command
a. Keynesian b. free trade c. mercantilist d. monetarist
Suppose the value of income elasticity of demand for a private college education is equal to 1.5. This means that:
A. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education. B. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent. C. a 10 percent increase in income causes a 15 percent increase in the quantity of private college education purchased. D. a 15 percent increase in income causes a 10 percent increase in the quantity of private college education purchased.
Although there are many examples of game theory in the real world, how well do you think specifics like payoff matrices, Nash equilibrium, and dominant strategies translate to reality?
What will be an ideal response?