Which of the following statements is correct?
a. Based on studies of human decision making, most people are overconfident in their own abilities.
b. Arrow's impossibility theorem disproves the median voter theorem.
c. Romantic gifts are an example of adverse selection.
d. An efficiency wage encourages workers to shirk.
a
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Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPod music player. CEO Steve Jobs also unveiled cheaper models of its Touch music player, a touchscreen-only device
An 8-gigabyte version now costs $230, down from $300. A 32-gigabyte model costs $400, down from $500. Calculate the price elasticity of demand for a 32 gigabyte Touch player if the quantity demanded increases from 850,000 to 950,000 the month after the price decrease. A) 0.5 B) 1.5 C) 1 D) 0.75
How does the leader's behavior in the quantity-leadership (Stackelberg) game compare to that in the analogous price-leadership game?
a. It behaves as a "puppy dog" in both. b. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game. c. It behaves as a "top dog" in the quantity leadership game but a "puppy dog" in the price leadership game. d. It behaves as a "top dog" in both.
Until recently, George lived in a home that was newly constructed in 2005 . In 2005, he paid $200,000 for the brand new house. He sold the house in 2006 for $225,000 . Which of the following statements is correct regarding the sale of the house?
a. The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP. b. The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP. c. The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by $25,000. d. The 2006 sale affected neither 2005 GDP nor 2006 GDP.
If the personal savings rate rose to 10%
A. our current account deficit would probably fall. B. our current account deficit would probably rise. C. our current account deficit would be unaffected.