When people change their minds about what they want simply because of the timing of the decision, economists refer to it as:
A. time inconsistency.
B. information overload paradox.
C. cost-price inconsistency.
D. time barriers to optimization.
A. time inconsistency.
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Which of the following does not hinder economic development?
a. low birth rates b. low saving c. lack of infrastructure d. low levels of technology e. the importance of tradition
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.
If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate?
a. 4 percent b. 6 percent c. 8 percent d. 10 percent
Which of the following explains why the MC curve is rising in area b?
a. MP in area b is falling.
b. MC in area a is falling.
c. MP rises with output.
d. MC rises with output.