Motivations for behavioral economics include:
A. people sometimes make choices that are inconsistent with standard economic theory.
B. all choices made by individuals are consistent with standard economic theory.
C. standard economic theory can lead to unreasonable conclusions about consumer welfare.
D. people sometimes make choices that are inconsistent with standard economic theory and standard economic theory can lead to unreasonable conclusions about consumer welfare.
D. people sometimes make choices that are inconsistent with standard economic theory and standard economic theory can lead to unreasonable conclusions about consumer welfare.
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The tying down of the price level to a nominal variable by the central bank is known as committing to ________
A) a nominal anchor B) rational expectations C) a customs union D) a positive aggregate demand shock
What is the meaning of the word “oligopoly”?
a. few buyers b. many sellers c. few sellers d. one buyer
Based on the graphic for perfect competition versus monopoly, which is the greatest area?
a. consumer surplus in a monopoly
b. consumer surplus in perfect competition
c. producer surplus in a monopoly
d. producer surplus in perfect competition
When we no longer assume that the exchange rate expected to occur in one year is constant, explain what variables affect the current exchange rate in a flexible exchange rate regime. Include in your answer an explanation of how changes in these variables affect the current exchange rate
What will be an ideal response?