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
The dual approach to the consumer’s problem is to choose: A) the highest indifference curve that just touches the budget line. B) the least-cost budget line required to achieve a given level of utility (satisfaction). C) the maximum income required to achieve a given level of utility (satisfaction). D) all of the above ANSWER […]
Date: September 9th, 2020
Less than half of female-headed poor families are active in the labor market. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
You have just found the consumer’s optimal combination of goods using constrained optimization. The marginal utility of income is the: A) Cobb-Douglas statistic. B) Hicks factor. C) Slutsky equation. D) Lagrange multiplier. ANSWER D
Date: September 9th, 2020
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that: A) the production process violates diminishing margin returns. B) production at this […]
Date: September 9th, 2020
Suppose a technological innovation shifts the marginal cost curve downward. Which one of the following cost curves does NOT shift? A) Firm’s short-run supply curve B) Average total cost curve C) Average variable cost curve D) Average fixed cost curve ANSWER D
Date: September 9th, 2020
The region of the U.S. with the highest poverty rate is the Midwest. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
If a racial group exhibits lower scores on IQ tests, this is evidence of their reduced intelligence. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
