The oversimplified formula for the multiplier is misleading because it ignores the effects of
A. price-level changes.
B. the foreign sector.
C. variable taxes.
D. All of the above are correct.
Answer: D
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If the simultaneous game is instead changed into a sequential game where the shoplifter can see whether the security guard is vigilant or not before deciding to steal. What is the Nash equilibrium of the game?
a. Steal, Vigilant b. Steal, Not vigilant c. Not steal, Vigilant d. Not steal, Not vigilant
Which of the following people has voting privileges in a corporation?
a. convertible stockholder b. preferred stockholder c. common stockholder d. corporate bondholder e. corporate manager
The definition of inflation is
a. a sustained increase in the price of a particular good or service. b. a sustained increase in the general (average) price level of goods and services in the economy. c. the sustained growth rate in real GDP. d. a sustained decrease in the average price level of goods and services in the economy.
If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing milk shakes.
Answer the following statement true (T) or false (F)