Incompleteness of a contract can be considered boundedly rational if at the time the parties draft the agreement they do not know how they can best react to certain contingencies
Indicate whether the statement is true or false
T
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Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This
A) is true and is a justification for tariffs to protect domestic jobs. B) is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy. C) is true but the benefits of free trade are still such that tariffs should not be placed on these industries. D) is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.
Consumer expenditure plans is an example of a forecasting method. Which of the general categories best described this example?
a. time-series forecasting techniques b. barometric techniques c. survey techniques and opinion polling d. econometric techniques e. input-output analysis
Suppose a tax on sellers has been imposed as shown in the graph. Once the tax is in place, the buyers experience:
A. a decrease in demand.
B. an increase in demand.
C. a decrease in quantity demanded.
D. an increase in quantity demanded.
We see permanent price differentials in land because
a. the demand for land is high b. land has few uses c. location is the inherent quality that often determines its value d. real estate brokers are inefficient e. land is not traded in free markets