According to Adam Smith
A) government intervention in markets is not desirable because an invisible hand leads decisions made in pursuit of self-interest to unintentionally promote the social interest.
B) politicians are well-equipped to regulate corporations and intervene in markets to improve market outcomes.
C) when big corporations pursue their self-interest of maximum profit, they will inevitably conflict with social interest.
D) in a market transaction buyers can either get what they want for less than they would be willing to pay or sellers can earn a profit, but both buyers and sellers can't gain simultaneously.
A
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Common knowledge in game theory
A) is information known by all players. B) is required for static games. C) does not impact the outcome of the game, since everyone has the information. D) Both A and B.
Assume Jean-Claude purchased real estate for $500,000 using $50,000 of which is his own money and $450,000 which he borrowed at an 8% interest rate. If the value increased by 10% in one year and he sold the property, what was Joe's rate of return on his investment? If the value of the property had declined by 2%, what would have been the rate of return on his investment?
A major employer in a small town announces upcoming major layoffs of employees. What should we expect to happen to the consumption functions of the affected employees?
a. the consumption functions will shift upward. b. most employees will move upward along their consumption functions c. the consumption functions will shift downward d. most employees will move downward along their consumption functions
All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the expected price level
a. True b. False Indicate whether the statement is true or false