As the real wage increases, assuming that the substitution effect dominates, then
a. individuals move to lower indifferent curves and consume less leisure.
b. individuals move to higher indifferent curves and consume less leisure.
c. individuals move to higher indifferent curves and consume more leisure.
d. individuals stay on the same indifferent curve and consume more leisure.
C
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Taylor has the following assets and liabilities:Two cars$15,000House$400,000Mortgage$300,000Cash$1,000Car loans$5,000Checking account balance$3,000Credit card balance$3,000What is the value of Taylor's assets?
A. $416,000 B. $308,000 C. $422,000 D. $419,000
What is the real dilemma facing the prisoners in the prisoners' dilemma game?
What will be an ideal response?
An industry with a high four-firm concentration ratio implies
a. firms have high supplier power b. firms have low supplier power c. buyers have a high supplier power d. buyers have a low supplier power
In John Rawls’ A Theory of Justice, people choose the rules for distributing income from behind a veil of ignorance. People understand that ability determines income, but they do not know their abilities or the abilities of others. Rawls argues that people are risk averse and will choose the distribution rule that maximizes their income in the worst-case scenario (they have relatively little ability). An economist would call this strategy
A. minimax. B. maximin. C. irrational. D. tacit collusion.