If Zach's saving function is of the form [S = -300 + 0.2Y], his consumption equals his income at an income level of
A. 300.
B. 600.
C. 1,040.
D. 1,500.
Answer: D
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When a movement up along the aggregate supply curve occurs, there is also
A) no movement along nor a shift in the short-run Phillips curve. B) a rightward shift of the short-run Phillips curve. C) a movement up along the short-run Phillips curve. D) a movement down along the short-run Phillips curve. E) a leftward shift of the short-run Phillips curve.
The optimal sharing group for national defense is the size of a nation
a. True b. False
In game theory, a prisoner’s dilemma
A. never has a dominant strategy. B. is equivalent to a Nash equilibrium. C. always has the best result for the players when game is played repeatedly. D. is a game that has a preferred outcome for the players that is not an equilibrium.
The flypaper theory of tax incidence
a. ignores the indirect effects of taxes. b. assumes that most taxes should be "stuck on " the rich. c. says that once a tax has been imposed, there is little chance of it changing, so in essence people are stuck with it. d. suggests that taxes are like flies because they are everywhere and will never go away.