Blog

All of these are examples of unintended consequences EXCEPT Seat belt laws cause drivers to drive faster An increase in taxes leads to a decrease in your income Drug enforcement leads to more crime Telling your child to stop causes them to do it more.

In a trade, one side may have an unfair advantage over the other. This is a result of Unintended consequences Asymmetric Information The free rider problem  Irrational behavior

All points on an indifference curve indicate 1. equal cost 2. equal utility 3. equal profit 4. equal income

If this game is played only once, then the most likely outcome is that   ABC charges a low price and QRS charges a high price ABC charges a high price and QRS charges a low price both firms charge a high price both firms charge a low price  

The theory of consumer choice examines how   consumers make utility-maximizing decisions wages are determined in competitive labor markets prices are determined in competitive goods markets firms make profit-maximizing decisions

Assume that the consumer depicted in the figure has an income of $20. The price of Skittles is $2 and the price of M&M’s is $4. The consumer’s optimal choice is point 1.  A. 2.  B. 3.  C. 4.  D.

If duopoly firms that are not colluding were able to successfully collude, then price and quantity would rise  price and quantity would fall price would rise and quantity would fall price would fall and quantity would rise

  The downward ­sloping line on the figure represents a consumer’s budget constraint. A consumer who chooses to spend all of her income could be at which point(s) on the figure?   Z only V, W, X, or Y only W, X, or Y only V only

Suppose we observe that the outcome of the game is one in which each company earns a profit of $10 million. This outcome   is the result of cooperation between the two companies, and we know that a cooperative outcome is easy in a game such as this one is the result of cooperation between the two companies, and we know that a cooperative outcome is difficult in a game such as this one is the most likely outcome of the game, regardless of whether the two companies cooperate is the result of each company pursuing its dominant strategy

What is the Financial-only Decision Making rule?