The idea of the "big tradeoff" points out the costs of
A) using a results approach to fairness when the rules approach is correct.
B) transferring income using taxes that decrease efficiency.
C) price hikes during natural disasters.
D) using a rules approach to fairness when the results approach is correct.
E) None of the above answers is correct.
B
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When inflation is not a surprise:
A) the Phillips curve is downward sloping. B) activist monetary policy has a real effect on the economy. C) the economy is not at full-employment output. D) it does not affect the unemployment rate. E) the economy is expanding.
An oligopoly using a maximin strategy must believe that the losses from underestimating a competitor's skill are worse than those from overestimating it
a. True b. False Indicate whether the statement is true or false