Which of the following statements about the so-called "hedonic treadmill" is not true?
A. It is a consequence of the fact that our brains are wired to notice changes rather than states
B. An increase in consumption level will give a permanent increase in happiness
C. It is the reason why people across a wide spectrum of incomes are found to be equally happy
D. A one-shot increase in income will, in the long run, not affect people's sense of satisfaction
B. An increase in consumption level will give a permanent increase in happiness
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The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?
A) Neither firm has a dominant strategy. B) Not entering is a dominant strategy for both firms. C) Neither firm entering is a Nash equilibrium. D) Only firm A will enter.
13) In the figure above, point D A) is less efficient than point C. B) is more efficient than point A. C) is less efficient than point B. D) is more efficient than point B.
The study of microeconomic theory focuses on
A. individual behavior in the economy B. Role of the banking system in the economy. C. Operation of the entire economy. D. Interaction of international trade and domestic production of goods and services.
Net exports are calculated as exports minus imports.
Answer the following statement true (T) or false (F)