According to classical economics, the amount that people save depends on the _____.
Fill in the blank(s) with the appropriate word(s).
interest rate
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Refer to the above figure. The figure gives the payoff matrix for two individuals who are being accused of robbing a bank together. Which of the following is the outcome with cooperation?
A) Both confess. B) Both don't confess. C) Bob confesses while Harry does not confess. D) Harry confesses while Bo does not confess.
To maintain a fixed exchange rate via intervention in the markets, a government should:
a. be ready to crack down on illegal traders. b. be ready to buy the home currency with foreign currency reserves when the home currency's value declines. c. be ready to sell the home currency when the home currency's value declines. d. be ready to borrow funds from international banks when the home currency's value declines.
Environmental regulation reduces the demand for Pennsylvania coal and the unemployment rate in Pennsylvania increases. This is an example of
A. regulatory unemployment. B. frictional unemployment. C. structural unemployment. D. cyclical unemployment.
Some economists have argued that path dependence and switching costs can lead to market failure. Which of the following is an example of this argument?
A) Costly celebrity endorsements lead many consumers to buy a product even though it is more expensive or less effective than a product that is not endorsed by a celebrity. B) A consumer who won a lottery for a Super Bowl ticket refuses to sell it for $3,000 even though he would not have paid $3,000 for a ticket if he had not won the lottery. C) While playing the ultimate game, an allocator decides to share $20 equally with a recipient rather than keep the $20 for herself. D) VHS video recorders became more popular with consumers than Sony Betamax recorders even though the Betamax recorders embodied a superior technology.