Expansionary fiscal policy includes
A) increasing taxes and increasing government purchases.
B) lowering interest rates, decreasing taxes and increasing transfer payments.
C) decreasing taxes and increasing government expenditures.
D) lowering the interest rates, decreasing taxes and decreasing government spending.
Ans: C) decreasing taxes and increasing government expenditures.
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What do we mean when we state that a particular principal-agent payment scheme is inefficient?
A) The principal and agent could find another agreement that would increase the sum of the owner's revenue and the worker's payment. B) The agreement involves the highest level of effort for the worker. C) The agreement leads to the lowest level of revenue for the owner. D) The sum of the income taxes paid by the owner and the worker is too high.
Refer to the table below. Recall that the bidders only know their own private value of the item and they do not know the other participants' private values. Further, assume each participant will submit bids using their optimal strategy. If the participants are bidding in a Dutch auction, Bidder ________ wins the auction and pays ________.
The table above lists the independent private values of five participants in an auction. Each of the bidders only knows their own value and does not know the private values of the other participants.
A) #3; a value less than $10 million and greater than $9.5 million
B) #5; a value less than $10 million and greater than $9.5 million
C) #5; 9.5 million
D) #3; $10 million
Economists agree that large firms with big research budgets create most of the economy's technological progress
Indicate whether the statement is true or false
Scarcity is illustrated graphically by a production possibilities frontier
a. True b. False Indicate whether the statement is true or false