Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good Y?
A) Pramilla
B) Sam
C) George
D) Lucas
D
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Which of the following statements is true?
A) Optimization in levels is based on behavioral analysis. B) Optimization in differences is based on marginal analysis. C) Optimization in differences is often faster than optimization in levels, as it considers all aspects of the feasible alternatives. D) Optimization in levels is often slower to implement than optimization in differences, as it considers only the aspects in which alternatives differ.
If the Fed announces a new policy of slower monetary growth it will result in lower inflation and no change in output only if
A) the policy is credible and price expectations are reduced. B) the policy is time consistent and expectations remain constant. C) the policy is time inconsistent and expectations increase. D) Both A and B are correct.
The QWERTY story illustrates: a. the commons problem
b. a negative network externality. c. the path dependence to technology. d. the problem of adverse selection. e. a situation of moral hazard.
Explain the difference between the effects of a reduction in legal reserve requirements and the effects of an open-market purchase of securities by the Fed