Lizzie's budget line is shown in the figure above. The relative price of a magazine is ________ per magazine
A) 2 cookies
B) 0.5 of a cookie
C) $1
D) $2
A
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Refer to the above figures. Which panel(s) represent economic growth?
A) Panels A and C only B) Panel D only C) Panel A only D) Panels B and D only
Consider two economies: A and B. If the gap between the growth rate of money supply and growth rate of real GDP is larger in country A than in country B, then according to the quantity theory of money:
A) the inflation rate will be lower in country A. B) the inflation rate will be higher in country A. C) real interest rates will be higher in country A. D) nominal interest rates will be lower in country A.
Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the Nash equilibrium occurs where
A) both Tasha and Gloria work extremely hard. B) both Tasha and Gloria work somewhat hard. C) Both A and B represent Nash equilibria. D) There is not a Nash equilibrium in this scenario.
If a state requires all drivers to purchase auto insurance, insurance companies still face the problem of
A) sunk costs. B) excess demand for their insurance. C) correctly pricing their insurance. D) adverse selection.