There is much world concern over the deteriorating condition of the pyramids and other historical structures in Egypt. While people of all nations enjoy visiting these structures, there has been little financial support for preservation coming from within Egypt or from elsewhere. Economists would describe this as an example of
A. an externality.
B. a public good.
C. a free-rider problem.
D. imperfect information.
Answer: C
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In the figure above, illustrate the effect of an increase in the U.S. interest rate. What is the effect on the foreign exchange rate?
What will be an ideal response?
In order for the first player to move in a sequential game to be able to gain an advantage from making the first move, the player must:
A) possess a dominant strategy that is better than the other player's dominant strategy. B) be able to achieve a higher maximum payoff than the other player. C) follow the same strategy he would pursue in a Nash equilibrium. D) be able to make a credible commitment to the strategy.
Taxpayers would be better off if a tax could just raise revenue without ______
a. altering the relative prices they face b. altering their preferences for a good c. tax shifting d. any income effects
Homogeneous products are indistinguishable from each other.
Answer the following statement true (T) or false (F)