Efficiency is illustrated by
a. both the production possibilities frontier and the circular-flow diagram.
b. neither the production possibilities frontier nor the circular-flow diagram.
c. the production possibilities frontier only.
d. the circular-flow diagram only.
c
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Refer to Table 14-4. What is the Nash equilibrium in this game?
A) Alistair increases its advertising budget, but Baine does not. B) There is no Nash equilibrium. C) Both Alistair and Baine increase their advertising budgets. D) Baine increases its advertising budget, but Alistair does not.
Both the permanent-income and life-cycle hypotheses make the assumption that people prefer a ________ consumption pattern in the long run, and so have a ________ short-run MPC out of sudden changes in income
A) smooth, low B) smooth, high C) jagged, low D) jagged, high