When firms are faced with making strategic choices in order to maximize profit, economists typically use ____ to model their behavior
a. monopoly theory
b. game theory
c. cartel theory
d. the theory of perfect competition
b
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An effective minimum wage tends to
A) increase the supply of unskilled labor. B) decrease the demand for unskilled labor. C) create a surplus of unskilled labor. D) accomplish all of the above. E) accomplish none of the above.
Current estimates of the marginal propensity to consume out of wealth are in the neighborhood of ________
A) three and one-half cents per dollar of wealth B) 45 cents per dollar of wealth C) 98 cents per dollar of wealth D) $4.87 per dollar of wealth
Between 2007 and mid-2009, the value of the U.S. dollar expressed in Chinese yuan
A. was zero because it was illegal to sell yuan. B. decreased precipitously. C. increased sharply. D. remained essentially constant.
Consider the following game. You pick a card from a deck and each time you select an ace, you get $260. For all other cards you must pay $13. What is the expected value of the game?
A. -$12 B. $0 C. $8 D. $32