When a consumer wants to compare the price of one product with another, money is primarily functioning as a:
A. unit of account.
B. medium of exchange.
C. checkable deposit.
D. store of value.
Answer: A
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Consider a version of the ultimatum game in which player A makes an integer offer {1,2 …,9} to player B. If B accepts, he or she gets that amount of money and A gets to keep the remainder of $10 . If B rejects, both get nothing. Which of the following is an offer that arises in a subgame-perfect equilibrium assuming players only care about monetary payoffs?
a. 1. b. 2. c. 4. d. 5.
In general, if a consumer good is produced domestically and consumed domestically, a decrease in its price will have which of the following effects?
a. The consumer price index will decrease relatively more than will the GDP deflator. b. The consumer price index and the GDP deflator will decrease by the same amount. c. The consumer price index will decrease relatively less than will the GDP deflator. d. One cannot generalize about the decrease in the consumer price index relative to the decrease in the GDP deflator.
What are some of the ways a private group can overcome a free rider problem?
What will be an ideal response?
What area on a supply and demand graph represents producer surplus?
What will be an ideal response?