Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?
A) This regime might work in the long-run, but is unlikely to produce good outcomes in the short run.
B) Policymakers in this regime might find that rules are being broken with increasing frequency.
C) This regime is more likely to be supported by nonactivist, than by activist policymakers.
D) This regime is more likely to result in high unemployment than in high inflation.
E) This regime is unlikely to produce large government budget deficits.
B
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The total income of capital and labor must equal the value of total:
A. production. B. revenue. C. investment. D. profits.
Betty consumes good x and good y. If the price of x = $3 and the price of y = $4, then
A) an extra unit of x costs 4/3 units of y. B) an extra unit of y costs 4/3 units of x. C) an extra unit of x costs 3/4 units of y. D) Both B and C.
Economists' suggestions for social policy are determined by subjective value judgments as well as by objective economic analyses.
Answer the following statement true (T) or false (F)
Behavioral economics attempts to make better predictions about human behavior by combining insights from the following fields, except:
A. Economics B. Biology C. Physics D. Psychology