The rate of unemployment that occurs when the economy is producing its potential GDP _____
a. is called the natural rate of unemployment
b. is zero
c. is thought to be approximately 10%
d. can be kept at zero through fiscal policy
e. is equal to the rate of stagflation in most years
a
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Which statement is TRUE about Mr. McConaughey's marginal utility from spending time with family and friends and breaking a sweat?
A) The marginal utility Mr. McConaughey gets from the first hour of spending time with his family is less than the marginal utility from the first hour of breaking a sweat. B) The marginal utility Mr. McConaughey gets from the third hour of spending time with his family is less than the marginal utility from the fourth hour of breaking a sweat. C) The marginal utility Mr. McConaughey gets from the fourth hour of spending time with his family is greater than the marginal utility from the fourth hour of breaking a sweat. D) The marginal utility Mr. McConaughey gets from the second hour of spending time with his family is greater than the marginal utility from the first hour of breaking a sweat.
Define the following terms and explain their importance to the study of economics
a. maximin criterion b. Nash equilibrium c. Dominant Strategy d. Zero-sum game e. Credible threat