In the context of collective decision-making, external costs are _____
a. the costs imposed on everyone in the group
b. the costs imposed on those outside the group
c. the costs imposed on those who voted for the decision
d. the costs imposed on those harmed by the decision
d
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All of the following are advantages of currency pegging EXCEPT
A) it reduces exchange rate risk. B) it is a check against inflation. C) it provides protection for firms that have taken out loans in foreign currencies. D) it keeps the exchange rate closer to its equilibrium rate.
If a sandwich shop produces zero sandwiches, which of the following costs will it still incur?
A. Rented storefront B. Sandwich ingredients C. Employee's wages D. None of these costs will be incurred if they no longer make sandwiches.
The marginal propensity to consume is
a) consumption divided by disposable income b) national income divided by consumption c) the change in national income caused by a $1 change in consumption d) the change in consumption caused by a $1 change in disposable income e) the percentage increase in consumption caused by a 1% decrease in savings
Refer to the information provided in Table 14.5 below to answer the question that follows. Table 14.5B's Strategy ?AdvertiseDon't Advertise??A's profit $200 millionA's profit $400 million?AdvertiseB's profit $200 millionB's profit $100 millionA's Strategy????Don'tA's profit $100 millionA's profit $150 million?AdvertiseB's profit $400 millionB's profit $150 millionRefer to Table 14.5. What is the Nash equilibrium in the game?
A. (Advertise, Advertise) B. (Advertise, Don't Advertise) C. (Don't Advertise, Don't Advertise) D. (Don't Advertise, Advertise)