An example of a commitment device would be:
A. buying yourself an ice cream after going to the gym.
B. putting a note on the cookie jar that you want to lose weight.
C. a swear jar that you and your friends agree must be paid $5 each time someone swears.
D. All of these are examples of commitment devices.
C. a swear jar that you and your friends agree must be paid $5 each time someone swears.
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If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
A) demand for the product will be lower in the future than it is today. B) price of its product will be higher in the future than it is today. C) price of its product will be lower in the future than it is today. D) price of inputs will be lower in the future than they are today.
Eurocurrency activities take place only in Europe
Indicate whether the statement is true or false
Zinc Communications developed a new type of cellular telephone that has a three-dimensional (3-D) screen. The company holds a patent on this technology, so they are the only seller of the 3-D phone when it is introduced
Over time, other companies introduce phones that are similar but not identical (i.e., they do not violate the patent held by Zinc). What happens to the demand for 3-D phones facing Zinc and to the profit-maximizing price for the 3-D phone as these similar products enter the market? A) Demand becomes less elastic, price increases B) Demand becomes less elastic, price declines C) Demand becomes more elastic, price increases D) Demand becomes more elastic, price declines
Keynes asserted that investment is more responsive to business expectations, technological changes and innovation, than to changes in interest rates
Indicate whether the statement is true or false