On a graph with consumption on the vertical axis and disposable income on the horizontal axis, the slope of the line is
A. greater than 1.
B. equal to 1.
C. less than 1.
D. undefined.
Answer: C
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Rational expectations are the theory according to which people optimally use all the information they have, including information about government policies, when forecasting the future.
Answer the following statement true (T) or false (F)
The trench warfare case during World War I is an example of a(n)
A) tit-for-tat strategy. B) explicit agreement. C) non-cooperative Nash equilibrium. D) None of the above.
A tax on an imported good is called
a. a subsidy b. dumping c. a quota d. a tariff e. restricted trade
Which of the following does the labor-leisure budget constraint identify?
a. Only the labor-leisure combinations that are possible b. Only the labor-leisure combinations that may be preferable c. Only the hours of leisure that are possible d. Only the income-leisure combinations that are possible