Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects.
b. Understanding how people respond to incentives helps government planners organize the economy.
c. Fair-minded people who care about others will not be affected by incentives.
d. Emphasizing incentives ignores altruistic nonmonetary values.
a. Changing one incentive can result in several unseen effects.
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The per-capita GNP of the industrial group is about ________ times that of the upper middle-income countries
A) 6 B) 10 C) 15 D) 19 E) 2
If the public is not sure about the central bank's motives, then
A) initial releases of data may be less accurate than later data releases. B) the predominant source of shocks to the economy must be shocks to the LM curve. C) central bankers should try to stabilize the inflation rate. D) modern macroeconomic modeling techniques will fail.
A price-setting firm
A. can raise the price of its product and sell the same number of units. B. can lower the price of its product and sell more units. C. possesses little market power. D. sells a product that is not differentiated from the product sold by its rivals or sells in a limited geographic market area with only one or a few sellers.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.