Individuals rationally choosing career paths should weigh the preparation costs to the potential incomes generated within those careers
Indicate whether the statement is true or false
True
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Any non-credible threat that is part of a Nash equilibrium in a sequential game cannot be played along the Nash equilibrium path.
Answer the following statement true (T) or false (F)
If a minimum wage is established, a monopsonist faces
A) an upward sloping supply of labor at all quantities of labor. B) a downward sloping supply of labor at all quantities of labor. C) a horizontal supply of labor at the minimum wage and the upward sloping portion of the labor supply curve above minimum wage. D) a horizontal supply of labor at the minimum wage and the downward sloping portion of the labor demand curve below minimum wage.
In a market characterized by many sellers, assume that transaction costs for both buyers and sellers are both costlessly cut to zero. What will happen to total economic value?
a. Economic value will remain unchanged because the decrease in consumer surplus will offset the increase in producer surplus. b. Economic value will remain unchanged because the decrease in producer surplus will offset the increase in consumer surplus. c. Economic value will certainly increase but its magnitude will depend on the initial transaction costs of the market participants. d. Economic value will certainly decrease but its magnitude will depend on the initial transaction costs of the market participants.
According to John Maynard Keynes, policy makers should respond to a downturn in the business cycle by:
A. Cutting taxes and increasing government spending. B. Cutting taxes and reducing government spending. C. Raising taxes and increasing government spending D. Raising taxes and reducing government spending E. Do nothing because government activism violates Keynes' laissez faire approach.