The market system is characterized by:
a. Extensive government constraints on individual behavior
b. Government rationing of all goods and services
c. Government control of all production decisions
d. Private ownership of the means of production
d. Private ownership of the means of production
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Which of the following could decrease the supply of dollars in the foreign exchange market?
a. a higher inflation rate in foreign countries b. lower interest rates in foreign countries c. lower prices in the United States d. an appreciation of other currencies e. a depreciation of the dollar
The prisoners’ dilemma illustrates the conflict between ______ and ______.
a. monopoly; perfectly competitive markets b. individual rationality; group rationality c. cartels; non-colluding oligopolists d. game theory; dominant strategies
Consider two lottery winners, Tino who is 65 years old and Sasha who is 32 years old. Which of these two would be expected to have the larger income effect, all else equal?
A) Sasha B) Tino C) Both would have no income effect. D) Both would have equal income effects.
Can it be efficient for one trader to consume all units of the goods while the other trader consumes nothing? In other words, does this point lie on the contract curve?
What will be an ideal response?