Does utility analysis explain children's behavior? Children love to play "dare" games. Does this sound familiar: "I dare you to ring Mr. Hollub's doorbell and wait until he answers before you run"? What makes a child take the dare?
a. If the utility of getting caught is positive, the dare is taken.
b. If the total utility gained from the dare is greater than the marginal utility of getting
caught, the dare is not taken.
c. If the total utility gained from the dare is greater than the marginal utility of getting caught, the dare is taken.
d. The child adds up the sum of the positive utility in taking the dare and the negative utility of getting caught. If the sum is positive, the dare is not taken.
e. The child compares the positive utility gained in taking the dare with the negative utility of getting caught. If the sum of the positive utility and negative utility ispositive, the dare is taken.
E
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The natural rate of unemployment
A. increases during recessions. B. equals the sum of frictional and cyclical unemployment. C. equals the sum of frictional and structural unemployment. D. is always less than full employment rate of unemployment.
Fixed exchange rates require the economic policies of countries linked by the exchange rate to be:
a. completely independent. b. complementary to each other. c. determined by the World Bank. d. similar in nature. e. determined by the International Monetary Fund.