Which of the following best describes the relationship between market transactions and the ultimatum and dictator games?
A. Market transactions operate more like the ultimatum game than the dictator game.
B. Market transactions operate more like the dictator game than the ultimatum game.
C. The ultimatum and dictator games both provide good representations of how market
transactions work.
D. Neither the ultimatum game nor the dictator game bears much similarity to market
transactions.
Answer: A
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Which of the following actions by the Fed would lead to an increase in the money supply?
A) an increase in the differential between the discount rate and the federal funds rate B) an increase in the required reserve ratio C) an increase in tax rates D) the purchase of government securities
A decrease in the size of a tax is most likely to increase tax revenue in a market with
a. elastic demand and elastic supply. b. elastic demand and inelastic supply. c. inelastic demand and elastic supply. d. inelastic demand and inelastic supply.
The self-interest theory of government was suggested by:
A. James Buchanan. B. Charles M. Tiebout. C. bureaucrats. D. the European Union.
In order to practice any form of price discrimination, a monopoly must be able to
a. identify the maximum price that each customer is willing to pay. b. separate its customers into distinct groups. c. prevent resale of its product. d. establish a legal barrier to entry.