With respect to events like global warming some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future.
B) exponential discounting weights (large) costs incurred far into the future heavily.
C) events far in the future do not affect us.
D) we should not care about costs far in the future.
A
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Which of the following statements about the substitution effect of a price change is true?
a. It is caused by a change in relative prices. b. It affects the consumer's ability, rather than willingness, to purchase a good. c. It assumes that the consumer substitutes more expensive goods for cheaper ones when income increases. d. It is usually equal to the income effect. e. It may cause the consumer to buy less of the good when its price falls.
National economic policies are usually set by the local government in the U.S., making it the focus of economic discussions
a. True b. False Indicate whether the statement is true or false
The only reason paper currency (e.g., the dollar bill) is accepted as money in the United States today is because it is backed by gold
Indicate whether the statement is true or false
Refer to the above graph. The long-run aggregate supply curve would be represented by which line?
A. 1 B. 2 C. 3 D. 4