What do RBC economists mean by the term calibration?
A) Modifying the structure of an economic theory to strengthen its logic
B) Changing a theory as the economy changes
C) Working out a detailed numerical example of a more general theory
D) Writing out the implications of a theory for all the main economic variables
C
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Why might a young, healthy person choose not to buy health insurance?
What will be an ideal response?
In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have ________ prices, ________ quantities sold, and ________ profit levels
A) different; different; different B) identical; different; different C) different; different; identical D) identical; different; identical E) identical; identical; different
Average cost curves have the same basic shape as
A. total cost curves. B. marginal cost curves. C. total fixed cost curves. D. average fixed cost curves.
Consider the game between the teens from the previous question. In addition to any pure-strategy Nash equilibrium, there is another one in mixed strategies. In it, each teen chooses to declare with probability
a. 0.52 b. 0.5 c. 0.34 d. 0.1