Some kids wait until the school year begins to buy their back-to-school clothes so that they are sure to fit in. Such follow-the-leader behavior is an example of what the text calls:
A. efficient rationality.
B. rules of thumb.
C. focal point equilibrium.
D. bounded rationality.
Answer: C
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In the short run, a permanent increase in the domestic money supply
A) has stronger effects on the exchange rate and output than an equal temporary increase. B) has stronger effects only on the exchange rate but not on output than an equal temporary increase. C) has weaker effects on the exchange rate and output than an equal temporary increase. D) has stronger effects on output, but lower effect the exchange rate than an equal temporary increase. E) has weaker effects only on the exchange rate than an equal temporary increase.
The disagreement value in a nonstrategic game is most closely related to
a. opportunity costs b. fixed costs c. total profit d. accounting costs
Which of the following is included in GDP calculations?
a. the college tuition paid to enroll in a course b. a check for $50 received on your birthday c. cash income received by a self-employed landscaper that is not reported to the IRS d. sales revenue received from a yard sale
If an economy keeps increasing its capital stock, then over time its production possibilities curve will:
A. not move. B. shift to the left. C. shift to the right. D. disappear because scarcity ceases to exist.