Microeconomics is often called
A) price theory.
B) decision science.
C) scarcity.
D) resource theory.
A
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A strategy is called a mixed strategy if it involves choosing ________
A) one particular action for a situation B) different actions randomly C) an action that yields a higher payoff to the opponent D) an action that yields zero payoff to the player
Suppose an excise tax is imposed on luxury boats and yachts. Economists argue that such a tax
a. is sure to be vertically equitable, since buyers of luxury boats and yachts are wealthy. b. entails no deadweight loss as long as buyers of boats and yachts can easily substitute one luxury good for another. c. violates the benefits principle of taxation. d. may burden workers in the luxury-boat-and-yacht industry more than it burdens the buyers of luxury boats and yachts.
Inflation target refers to the commitment of central bankers to keep inflation below a certain rate for the next year or two
Indicate whether the statement is true or false
The shortfall between actual real GDP and potential GDP
A. decreases as the unemployment rate rises. B. increases as the unemployment rate rises. C. increases as the employment rate rises. D. decreases as the labor force increases.