Behavioral economists put significant emphasis on using models to:
A. Predict decisions, but not so much to understand how those decisions are made
B. Predict decisions and also to understand how those decisions are made
C. Understand decision processes, but not the prediction of the decision itself
D. Understand people's actions, but not what drive people to act in certain ways
B. Predict decisions and also to understand how those decisions are made
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In mixed strategy Nash equilibria, players play each of two pure strategies with probability 0.5.
Answer the following statement true (T) or false (F)
The tax with the minimum excess burden of taxation is most desirable from an efficiency standpoint because _____
a. it suggest that people substituted away from the tax by a considerable amount b. it minimizes tax shifting c. it produces the least social cost per dollar of revenue raised d. it will raise the most revenue for government
The above figure shows supply and demand curves for milk. Suppose that the government passes a $2 per gallon subsidy. The deadweight loss resulting from this policy will be
A) j. B) f + g. C) b + c + f + g. D) c + g.
The law of supply states that other things being equal
A) supply creates its own demand. B) supply will increase if productivity increases. C) as price increases, quantity supplied increases. D) supply will increase to meet demand if demand increases.