Games:
A. will always have several stable outcomes.
B. are always zero sum.
C. will always have a dominant strategy.
D. None of the above are true.
Answer: D
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Under current tax law individuals do not pay taxes on health insurance benefits they receive from their employers. As a result,
A) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. B) the quality of health care provided is less than it would be if benefits were taxed. C) politicians are encouraged to raise income and payroll taxes. D) the federal government spends more than it receives in tax revenue.
If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ________ and M2 will ________
A) not change; increase B) decrease; not change C) decrease; increase D) increase; increase E) increase; decrease