One of the steps in cost-benefit analysis is distinguishing time frames.

Does game theory always predict real-world situations involving strategic interactions? Why or why not?

What will be an ideal response?

Which of the following is an example of a positive economic statement?

a. The economy's real output increased at about 3 percent last year and the unemployment rate decreased. b. A central bank should not print too much money because inflation could result. c. Congress should stabilize the social security system by raising taxes now. d. The government farm products surplus should be distributed to the needy.