Which of the following is not among the functions of contract?
a. to provide incentives for efficient reliance
b. to reduce transaction costs
c. to discourage the development of asymmetric information
d. to provide risk allocation mechanisms
c
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Household production consists of households producing goods and services, like meals, cleaning and child care, instead of firms
a. True b. False
Suppose a consumer's utility function is U(F0, F1) = F00.5F10.5, where F0 represents food consumed this year and F1 represents food consumed next year. For that utility function, the marginal utility of food consumed this year is 0.5 × (F1/F0)0.5 and the marginal utility of food consumed next year is 0.5 × (F0/F1)0.5. Suppose the consumer earns $100 this year and nothing in the next, food costs $1 per unit in both years, and the interest rate is 10%. How much does she spend this year, and how much does she save?
A. She spends $45 this year and saves $55. B. She spends $50 this year and saves $50. C. She spends $55 this year and saves $45. D. She spends $95 this year and saves $5.
The AD curve shifts to the left with a __________ in government purchases (G) or a __________ in taxes
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Which of the following goods or services are among top U.S. imports?
a. aircraft b. education c. computers d. soybeans