When two variables in a graph are related to a third, changing the third causes
A) a movement along the curve.
B) a shift of the curve.
C) no change in the curve because the third variable isn't on the axes.
D) either a shift or a movement in the curve, but more information is needed to determine which occurs.
E) None of the above answers is correct.
B
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This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.According to the figure shown:
A. both have incentive to put forth high effort. B. both will act in their own self-interest and get a stable, but less than optimum, equilibrium. C. there is no stable equilibrium to the game. D. both will act in their own self-interest and get an optimum equilibrium that is stable.
The money aggregate M1 includes each of the following, except:
A. demand deposits at commercial banks. B. currency in the hands of the public. C. currency in the vaults of commercial banks. D. travelers checks that have been issued.
If recessions are in large part the consequence of coordination failures,
A) government must direct or control private spending to reduce instability. B) stability cannot be achieved without the use of discretionary fiscal policy. C) stability cannot be achieved without the use of discretionary monetary policy. D) the economy is unlikely to respond smoothly and predictably to shifts in government policy.
We know that in antiquity, China exported silk because no one in any other country knew how to produce this product. From this information we know that
A) China had a comparative advantage in silk. B) China had an absolute advantage, but not a comparative advantage in silk. C) no comparative advantage could exist because the technology was not diffused. D) China exported silk for political reasons even though it had no comparative advantage. E) China was unable to profit by exporting silk because it was unknown in the rest of the world.