Suppose a government have a stated policy that it will not negotiate with hostage takers. Now someone is taken hostage, what would be the best policy for the government? Explain
What will be an ideal response?
The best policy of the government is to commit not to negotiate. By giving up the option to negotiate, it is likely to prevent hostage takings in the first place.
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If your real income in base year prices is $50,000, then if the CPI is 170, what is your nominal income?
A) $85,000.00 B) $29,411.76 C) $70,000.00 D) $50,000.00 E) $71,428.57
The above figure shows the market demand curve for mobile telecommunications (time spent on a mobile phone). If the price were $2.50, consumer surplus equals
A) $301.00. B) $924.50. C) $1,225.50. D) $0
Refer to the graph below. A minimum wage in this labor market would
a. cause some layoffs as the quantity demanded for workers falls.
b. create some unemployment as a result of an increase in the quantity supplied of labor looking for a job.
c. create a surplus of labor in this market.
d. All of the above.
Suppose the variable x2 has been omitted from the following regression equation,
is the estimator obtained when 
is omitted from the equation. The bias in
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A. 
>0 and 
and 
are positively correlated
B. 
<0 and 
and 
are positively correlated
C. 
>0 and 
and 
are negatively correlated
D. 
= 0 and 
and 
are negatively correlated