A point on the budget line is affordable to the consumer.
a. true
b. false
a. true
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Carlos has been invited to go skiing for the afternoon with his friends. It will cost $40 for a lift ticket. It is likely Carlos will:
A. overvalue the benefit of skiing. B. undervalue the opportunity cost of his afternoon. C. find it difficult to place a value on what he might do instead of skiing. D. All of these are true.
The two types of games include
A) fast and slow. B) sequential and simultaneous. C) price and quantity. D) real and nominal.
If firms in a monopolistically competitive industry are earning economic profits, then in the long run
A. new firms producing close substitutes will enter the industry and this entry will continue until economic profits are eliminated. B. these firms can continue earning economic profits because entry into the industry is blocked. C. new firms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated. D. the government will most likely regulate firms in this industry to reduce these economic profits.
Which of the following pairs help explain why self-correction from a decline in aggregate demand in the economy may be slow rather than rapid?
A. Theory of compensation wage differentials; theory of derived demand for labor. B. Efficiency wage theory; insider-outsider theory. C. Insider-outsider theory; principle-agent problem. D. Externalities; efficiency wage theory.