Time inconsistency means
A) taking different decisions at different times despite facing the same situation.
B) making policy choices that violate the intertemporal budget constraint.
C) deciding to do something tomorrow, and then doing something different tomorrow.
D) adding a random factor to decisions.
C
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According to the law of comparative advantage, a doctor who is also a talented auto mechanic should
a. get a part-time job at a gas station. b. do her own auto repairs and those of her neighbors. c. hire a professional mechanic to repair her car. d. only repair the cars of other doctors.
Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:
a. structural unemployment. b. involuntary unemployment. c. frictional unemployment. d. cyclical unemployment.