In order to accurately capture the multiplier effect, it is important to know:
A. individual's wealth.
B. what proportion of their additional income people spend.
C. what people's expectations of the future are.
D. real GDP.
B. what proportion of their additional income people spend.
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One possible solution to an incentive problem arising under unobservable actions is:
A. to be the boss and fire the inefficient worker and send a signal to others. B. to pay more and make the worker efficient. C. to sell the agent the right to the total production. D. to buy the agent's right to his total output.
A perfectly competitive industry's short-run supply curve is best described as
A) the upward sloping portion of the industry's marginal cost curve. B) horizontal. C) perfectly inelastic. D) the horizontal summation of the individual firms' supply curves.
Chipotle offered free burritos to celebrate teachers. What type of price discrimination does this demonstrate?
A. First-degree price discrimination. B. Second-degree price discrimination. C. Third-degree price discrimination. D. It is not price discrimination.
In a set of indifference curves, why do the indifference curves that lie to the right represent higher levels of utility?
What will be an ideal response?