Behavioral game theory assumes
A) people act rationally.
B) people are subject to biases that cause them to act irrationally.
C) that people behave differently when playing games than when "playing for real."
D) people optimize using all available information.
B
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If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP less than potential GDP, there is
A) a recessionary ga
Suppose that elementary education creates a positive externality. If the government does not subsidize education, then
a. the equilibrium quantity of education will be equal to the socially optimal quantity of education. b. the equilibrium quantity of education will be greater than the socially optimal quantity of education. c. the equilibrium quantity of education will be less than the socially optimal quantity of education. d. There is not enough information to answer the question.