Psychological incentives:
A. are not important in non-economic settings.
B. never serve as commitment devices.
C. are not important in economic settings.
D. can serve as commitment devices.
Answer: D
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Which of the following statements is NOT consistent with new growth theorists' beliefs?
A. Innovation can lead to lower productivity costs. B. Technology must be understood in terms of what drives it. C. Rewards lead to technological advances. D. Inventions are much more important than innovation.
In an administrative command economy, a price below equilibrium
a. means we can buy cheap goods freely b. creates opportunities for corruption c. does not matter at all d. both a and b are correct e. none of the above
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
The market clearing price is
A. the price which leaves an excess quantity supplied. B. the lowest price at which a positive quantity supplied exists. C. the price which leaves an excess quantity demanded. D. the price which eliminates excess quantity supplied or excess quantity demanded.