In a problem involving exchange, the contract curve shows
A) all exchanges that make both parties better off.
B) the one exchange that makes both parties better off.
C) all possible allocations of goods between both parties.
D) all possible efficient allocations between both parties.
D
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One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers, Alpha, Beta, and Charlie, have targeted Milltown's population. To get a donation, they must call Milltown's residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. To an economic naturalist, this scenario would explain why:
A. fundraising calls are outsourced to Asian countries. B. telephone fundraisers have become less popular. C. fundraising calls typically occur shortly before people go to bed. D. fundraising calls typically occur shortly after people arrive home from work.
Over a month in late 2008, the Federal Reserve Bank reduced the interest rate by 1 percentage point
Given that the United States operates under a ________ exchange rate regimes, the primary purpose of these changes was ________ exchange rate of each currency. A) flexible; not designed to influence B) flexible; designed to influence C) fixed; designed to influence D) fixed; not designed to influence
A rational choice is ___________
A. the best thing you must forgo to get something B. what you are willing to forgo to get something C. made by comparing marginal benefit and marginal cost D. the best for society
A rational individual would rather receive $1,000 today than receive $1,100 in one year if the applicable nominal interest rate was 12%
a. True b. False Indicate whether the statement is true or false