The old adage, "Don't put all your eggs in one basket," is very similar to a modern bit of advice concerning financial matters:
a. "Buy low-risk bonds.".
b. "Use a medium of exchange.".
c. "Diversify.".
d. "Intermediate.".
c
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At the moment, the Federal Reserve keeps the discount rate above the fed funds rate. In so doing, they are
A) discouraging commercial banks from borrowing from the Fed. B) encouraging commercial banks to borrow from each other. C) doing both A and B. D) doing none of the above.
Repeated play can change the outcome in sequential games by:
A. reducing the first-mover advantage. B. removing the incentive to cooperate. C. making collusion more probable. D. increasing the incentive to defect.
The rational-ignorance effect refers to the
a. lack of incentive voters have to become well-informed about candidates and issues because their vote is unlikely to affect the outcome of an election. b. fact that most people choose to become just as well-informed when making choices as consumers as they do when making choices as voters. c. lack of rational analysis on the part of voters when they choose not to become informed about candidates and issues even though this knowledge would produce great personal benefit to them. d. problem of not enough information being supplied to voters because politicians are not spending enough on campaign adds to inform voters of their positions on issues.
If a consumer has an income of $200, the price of X is $5, and the price of Y is $10, the maximum quantity of X the consumer is able to purchase is:
A. 20. B. 10. C. 5. D. 40.