Which branch of study helps in economic decision making when an individual's behavior determines the payoffs to others?
A) Microeconomics
B) Macroeconomics
C) Game theory
D) Public economics
C
You might also like to view...
Figure 4.3 illustrates the demand for tacos. An increase in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
The bias in the CPI distorts private contracts because
A) a future payment that is linked to the CPI is likely to be raised above the true increase in the price level. B) a worker that links her salary to the CPI is likely to be worse off than a worker that doesn't link her salary to the CPI. C) a lender that links the interest payments on the loan to the CPI is likely to be worse off than a lender that does not link the interest payments on the loan to the CPI. D) a future increase in a payment that is linked to the CPI is likely to be less than the true increase in the price level. E) the CPI cannot properly account for what goods and services a typical urban consumer buys.
Refer to the scenario above. What is likely to be the impact on Firm A's sales if Firm B decides to sponsor the event while Firm A decides not to sponsor the event?
A) A 5% increase in sales B) A 7% increase in sales C) A 0% increase in sales D) A 2% increase in sales
Interest rate parity is more likely to hold in the short run than purchasing power parity
Indicate whether the statement is true or false