If disposable income decreases from $1800 to $1500 and MPC = 0.75, then saving will:
A. Increase by $225
B. Decrease by $225
C. Increase by $75
D. Decrease by $75
D. Decrease by $75
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Refer to Figure 4.1. The dominant strategy for Theodore is
A) Left. B) Right. C) both Left and Right. D) Theodore does not have a dominant strategy.
If firms successfully gather information about consumers before offering them insurance, and if this leads to a separating equilibrium, efficiency is restored.
Answer the following statement true (T) or false (F)
Dell and Gateway must decide whether to lower their prices, based on the potential economic profits shown in the payoff matrix above. (The profits are in millions of dollars)
If the firms collude and don't cheat, Dell's profit is ________ million and Gateway's profit is ________ million. A) $10; $10 B) $15; $15 C) $5; $20 D) $20; $5
Which of the following statements is CORRECT?
A) Compared to stocks, bonds have a higher return. B) Compared to stocks, bond returns have a higher standard deviation. C) Compared to bonds, stock returns have a lower standard deviation. D) Compared to bonds, stock returns have a higher standard deviation.