The Slutsky equation is a mathematical representation of: A) a utility function. B) the marginal utility of income. C) a demand curve. D) the income expansion path. E) the substitution and income effects. ANSWER E
Date: September 9th, 2020
The simple correlation between educational attainment and income is very strong and consistent. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Use the following statements to answer this question: I. An increase in the firm’s fixed costs will also shift the firm’s short-run supply curve to the left. II. An increase in the firm’s fixed costs will not shift the firm’s short-run supply curve to the right or left, but it may alter how much of […]
Date: September 9th, 2020
Short-run supply curves for perfectly competitive firms tend to be upward sloping because: A) there is diminishing marginal product for one or more variable inputs. B) marginal costs increase as output increases. C) marginal fixed costs equal zero. D) A and B are correct. E) B and C are correct. ANSWER D
Date: September 9th, 2020
What kind of game is shown in Scenario 13.11? A) Axelrod’s Paradox B) Stackelberg Match C) Prisoners’ Dilemma D) Cournot’s Duopoly Game E) It is not possible to tell what kind of game it is because the strategies have not been identified. ANSWER C
Date: September 9th, 2020
Refer to Scenario 10.5. From the perspective of the firm, what is the marginal cost of the 5th garden hose? A) 4 B) 5 C) 16 D) 12 E) 8 ANSWER B
Date: September 9th, 2020
Refer to Scenario 17.3. Moral hazard arises in this situation because once the firm A) pays the premium that is based on the 0.001 probability, it has no incentive to spend the additional $80 for the fire protection program, so the true probability of loss is no longer 0.001. B) pays the premium that is […]
Date: September 9th, 2020
It can be rational to play tit-for-tat in a repeated Prisoners’ Dilemma game A) only if the game is played an infinite number of times. B) if the game is played an infinite number of times, or if it is uncertain how many times it will be played. C) only if the game is played […]
Date: September 9th, 2020
Defining global poverty in the context of American standards would classify most people in the developing world as poor. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The first term in an NPV calculation is usually A) positive, because firms consider only positive returns. B) positive, because interest charges do not accrue until the second period. C) zero, because interest charges do not accrue until the second period. D) negative, because funds for the project have to be borrowed up front before […]
Date: September 9th, 2020
