Which of the following is an accurate statement about people’s choices?
a. They choose, knowing for sure which choice is best.
b. They choose, expecting the best outcome from their choice.
c. They choose, doubting their choice will have a good outcome.
d. They choose, having no idea what choice is a good one.
b. They choose, expecting the best outcome from their choice.
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A fall in the real interest rate, all other things held constant, will cause a country's ________ to ________
A) current consumption: increase B) current consumption: decrease C) terms of trade; improve D) terms of trade; worsen E) welfare level; improve
Opportunity cost is defined as
A) the highest valued alternative that must be given up to engage in an activity. B) the benefit of an activity. C) the total value of all alternatives that must be given up to engage in an activity. D) the monetary expense associated with an activity.
The tradeoff for monetary policy represented by the Phillips curve is
a. lower inflation for lower output. b. lower inflation for higher unemployment. c. lower inflation for higher employment. d. higher expected inflation for higher output. e. none of the above.
From a new deposit in a checking account potential money creation is: a. excess reserves times money multiplier
b. initial deposit times money multiplier. c. actual reserves times required reserve ratio. d. required reserves times money multiplier.