A team of researchers has conducted a study of the well being of the citizens of the island nation of Zarasa
Using a scale from 1 (least happy) to 10 (most happy), the researchers find that citizens who earn 100 Zarutas per year have a mean happiness of 2.0, those who earn 200 Zarutas per year have a mean happiness of 6.0, and those who earn 300 Zarutas per year have a mean happiness of 7.0. The researchers should make which of the following conclusions? A) The utility of Zarasians increases with income.
B) The marginal utility of Zarasians increases with income.
C) The marginal utility of Zarasians decreases with income.
D) both A and B
E) both A and C
E
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A "bad choice" as defined in choice architecture is a choice that:
A. policymakers want to nudge participants away from. B. is one that the chooser will regret later. C. is considered not optimal by the choice architect. D. policymakers consider not optimal for society, despite individual choosers' benefits.
Under the adaptive expectations hypothesis, which of the following is the effect of a shift to a more expansionary monetary policy?
A. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. B. In the short run, the unemployment rate will decrease, but in the long run, it will self correct to the natural rate of unemployment. C. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. D. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.
Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A. Bo confesses while Max does not confess. B. Both Bo and Max do not confess. C. Bo does not confess while Max confesses. D. Both Bo and Max confess.
New computer technology has
A) increased the cost of financial innovation. B) increased the demand for financial innovation. C) reduced the cost of financial innovation. D) reduced the demand for financial innovation.