A proposal to build a dam on a wild river may look like a good idea from the cost/benefit study done by the Army Corps of Engineers, but an analysis done by the Sierra Club might suggest that the dam would be a complete waste of money. When different groups give us radically different cost/benefit results:
A. we should conclude that the best way to decide who is telling the truth is to find which group has the best intentions.
B. the studies may still be useful if we can see the underlying assumptions and estimates of each group.
C. we have an example of how cost/benefit analysis does not work as a way of forming policy.
D. we should realize that sometimes it is best to trust in the political process rather than try to use an economic approach.
Answer: B
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Cooperation is ________ likely in a repeated game because it ________ possible for players to punish each other for cheating.
A) more likely; is not B) less; is C) more; is D) less; is not
Other things equal, which of the following might shift the demand curve for gasoline to the left?
A. The discovery of vast new oil reserves in Montana. B. The development of a low-cost electric automobile. C. An increase in the price of train and air transportation. D. A large decline in the price of automobiles.
As opposed to corporate strategy, business strategy is focused on
A. how to compete with other firms in the industry. B. the type of industry to produce in. C. the type of production technique to use. D. increasing the elasticity of consumer demand.
Refer to the information provided in Table 25.4 below to answer the question(s) that follow.Table 25.4
Refer to Table 25.4. If the required reserve ratio were changed to 5% and First Charter Bank continues to hold $1,200,000 in reserves, its excess reserves will be
A. $400,000. B. $600,000. C. $800,000. D. $1,000,000.