The outcome of the game in the figure shown will be:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. Joe puts forth high effort and Sarah puts forth low effort.
B. Joe puts forth low effort and Sarah puts forth high effort.
C. Joe and Sarah both put forth low effort.
D. Joe and Sarah both put forth high effort.
C. Joe and Sarah both put forth low effort.
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If the Fed's policy reaction function equals r = .02 + p, where r is the real interest rate, p is the inflation rate. If the real rate of interest is set at 5%, then the rate of inflation must be:
A. 4% B. 2%. C. 1%. D. 3%.
A consequence of increasing marginal costs of producing digital music players in Japan is
A) Japan will stop short of complete specialization in the production of digital music players. B) Japan will likely impose trade restrictions on imported digital music players. C) Japan will not export digital music players. D) Japan will import digital music players from countries that don't experience increasing marginal costs.
Recall the Application about the success of the 2009 stimulus package to answer the following question(s).According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package:
A. were very successful in stimulating consumption spending. B. did very little to stimulate consumption spending. C. were split very evenly between consumption spending and household saving. D. were primarily used to pay off home mortgage balances.
A move from F to G represents
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.