Answer the following statement true (T) or false (F)
1) According to behavioral economists, self-control problems generally result from poor
information.
2) Precommitments must impose costs on people to be effective.
3) Precommitments are a tool designed to overcome time inconsistency.
4) Behavioral economists avoid dealing with fairness concerns because the concept is too
subjective.
1) F
2) F
3) T
4) F
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In order to smooth the influence of shocks throughout an economy, it is helpful for governments within a monetary union to have
A) ways to conduct fiscal transfers. B) seignorage. C) currency competition. D) monetary autonomy.
Money does not solve the double coincidence of wants problem unless it is generally acceptable
a. True b. False Indicate whether the statement is true or false
A price floor set above an equilibrium price tends to cause persistent imbalances in the market because
a. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. b. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. c. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. d. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
Amanda inherited the only local cable TV/Internet company in town after her father passed away. The company has a local monopoly on the delivery of high-speed Internet service. The company is completely unregulated by the government and is therefore free to operate as it wishes. Assume that Amanda understands the true power of her new monopoly. Which of the following statements is (are) correct?
(i) She will be able to set the price of high-speed Internet service at whatever level she wishes. (ii) The customers will be forced to purchase high-speed Internet service at whatever price she wants to set. (iii) She will be able to achieve any profit level that she desires. a. (i) only b. (ii) only c. (i) and (iii) only d. (i), (ii), and (iii)