Which of the following statements is false?
A) Keynes believed that the level of investment depends on more than just the interest rate.
B) Saving is the difference between disposable income and consumption.
C) Keynes believed that saving is more responsive to changes in income than to changes in the interest rate.
D) According to Keynes, wage rates may fall too quickly when the economy is in a recessionary gap.
D
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The combinations of gasoline and coffee along one of Sam's indifference curves are combinations
A) which require the same total expenditure. B) that he can afford with his $60.00 income. C) among which he is "indifferent." D) that give him the same marginal rate of substitution.
In the prisoner's dilemma game:
A. there is a dominant strategy for both players. B. there is a dominant strategy for only one player. C. there is no dominant strategy for either player. D. there is a dominant strategy for a player depending on what the other player does.
In the cost-benefit analysis of public goods, the benefits
A. Can be accurately measured using the market price of the public good. B. Are more easily estimated than the costs. C. Can be only roughly estimated using highly subjective techniques. D. Can be accurately measured by ballot box economics.
Other things equal, a serious recession in the economies of U.S. trading partners will:
A. have no perceptible impact on the U.S. economy. B. cause inflation in the U.S. economy. C. depress real output and employment in the U.S. economy. D. stimulate real output and employment in the U.S. economy.