As disposable income ________ planned consumption expenditure ________
A) decreases; increases
B) increases; decreases
C) decreases; remains the same, since it is autonomous expenditure
D) increases; increases
E) increases; changes only if net taxes also change
D
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From the perspective of the theory of efficient markets, explain why it may be difficult for professional portfolio managers who have an exceptional year to continuously outperform the market average.
What will be an ideal response?
A singer would willingly perform in a concert for $10,000. If she is paid $25,000 for the concert, she is
A) receiving $25,000 to cover her opportunity cost. B) not being paid her full opportunity cost. C) receiving $15,000 of economic rent. D) certainly being paid more than warranted by the level of demand.
An increase in the U.S. interest rate will most likely
A) reduce the attractiveness of investment in the United States. B) lead to a decrease in the value of the U.S. dollar. C) lead to an inflow of funds to the United States and an appreciation of the dollar. D) provide a stimulus to U.S. export industries.
An equilibrium in a game in which players pursue their own self-interest is called
A) a Nash equilibrium. B) a cooperative equilibrium. C) a noncooperative equilibrium. D) a prisoner's dilemma.