What are factor endowments?
What will be an ideal response?
Factor endowments are the quantity and quality of labor, land, and natural resources of a country.
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The principal-agent problem:
A. is when the principal has more information than the agent. B. is when the agent is tempted to put in more effort than the principal would like. C. is commonly seen in the employer-employee relationship. D. is when the principal and agent have the same objectives.
Among developed economies, the natural rate of unemployment
a) is a fixed number b) tends to follow a steady upward trend c) varies, but less the actual unemployment d) varies more the actual unemployment e) tends to follow a steady downward trend
Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.
In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A. aggression; aggression B. cooperation; cooperation C. cooperation; aggression D. aggression; cooperation
Exhibit 6A-2 Consumer Equilibrium
?
Given the budget lines and indifference curves shown in Exhibit 6A-2, points D, A, and E yield:
A. more total utility than point B. B. more total utility than points B and F. C. less total utility than points B and C. D. equal total utility to points B, F, and C.