In an effort to lose weight, Sam posts flyers all over town that offer a reward of $50 to anyone who catches him eating unhealthy food. Sam's flyers are an example of:
A. a commitment device.
B. price-optimization theory.
C. the law of supply.
D. a way to deal with inconsistent costs.
A. a commitment device.
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The marginal cost is the
a. same as the variable cost when output is increasing b. change in total cost as the quantity changes by one unit c. change in average variable cost as the quantity changes by one unit d. change in total fixed cost as the quantity changes by one unit e. same as the fixed cost when average fixed cost is at a minimum
An industry can be defined as
A. a group of firms that compete to sell a specific product. B. any company that produces and sells products. C. the set of buyers of a particular good or service. D. the top companies that sell a product.
If a policy is carried out by a rule, then we have an example of
A) active policy making. B) discretionary policy making. C) nondiscretionary policy making. D) natural policy making.
If medical insurers could use information contained in DNA to predict the likelihood of major medical illnesses, the most likely outcome is that:
A. there would be an adverse selection problem and average insurance rates would fall. B. the adverse selection problem would be decreased and average insurance rates would fall. C. the adverse selection problem would be decreased and average insurance rates would rise. D. there would be an adverse selection problem and average insurance rates would rise.