Jane spends 85% of her income each year, even though she knows she should be saving 20% for retirement. Jane's behavior indicates that her behavior tends to be
a. irrational.
b. inconsistent over time.
c. satisficing rather than maximizing.
d. undefined.
b
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The difference between the risk-free rate and the interest rate a particular investor has to pay is called the:
A. credit spread. B. risk premium. C. Both of these are true. D. Neither of these is true.
For the most part, prior to 2008, banks typically held:
A. excess reserves equal to approximately 100% of deposits. B. excess reserves equal to less than 1% of deposits. C. excess reserves equal to between 10 and 20% of deposits. D. absolutely no excess reserves.
Because a monopolist has no incentive to control costs under a policy of average-cost pricing, we can expect:
A. price to increase over time as costs rise. B. price to fall over time as costs rise. C. profits to increase over time as costs rise. D. profits to decrease over time as costs rise.
Which of the following are considered factors of production?I.LandII.LaborIII.Physical capitalIV.Entrepreneurship
A. I and II only B. I and III only C. I, II and III only D. I, II, III and IV