Refer to Figure 7.1. If Angus chooses to earn the most money and Dudley does nothing, Dudley will receive a daily payoff of
A) $100.
B) $350.
C) $550.
D) $700.
B
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Monetary policy goals include
i. maximum employment. ii. stable prices. iii. moderate long-term interest rates. A) i only B) ii only C) i and iii only D) i and ii only E) i, ii, and iii
Suppose a profit-maximizing firm in a competitive market produces rubber bands. When the market price for rubber bands falls below the minimum of its average total cost, but still lies above the minimum of average variable cost, in the short run the firm will
a. experience losses but will continue to produce rubber bands. b. shut down. c. earn both economic and accounting profits. d. raise the price of its product.
The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of:
A. communism. B. a market system. C. a command system. D. socialism.
Present bias occurs because there is a mismatch in the timing of benefits and costs.
Answer the following statement true (T) or false (F)