Which of the following is the best example of a precommitment used to overcome time inconsistency
A. Finding a running partner and setting a regular schedule of when you will run together.
B. Deciding to save a percentage of each month's paycheck.
C. Signing up for a free trial membership at the local gym.
D. Buying an alarm clock.
Answer: A
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A curve that represents all combinations of market baskets that provide the same level of utility to a consumer is called:
A) a budget line. B) an isoquant. C) an indifference curve. D) a demand curve. E) none of the above
When there is multicollinearity in an estimated regression equation,
a. the coefficients are likely to be small. b. the t-statistics are likely to be small even though the R2 is large. c. the coefficient of determination is likely to be small. d. the problem of omitted variables is likely. e. the error terms will tend to have a cyclical pattern.
"If it were not for the law of diminishing marginal returns, the world's wheat could be grown in a flower pot." Explain
For most producing firms:
A. marginal cost rises as output is carried to a certain level, and then begins to decline. B. total costs rise as output is carried to a certain level, and then begin to decline. C. average total costs decline as output is carried to a certain level, and then begin to rise. D. average total costs rise as output is carried to a certain level, and then begin to decline.