"Cheap talk" is considered cheap because
A) communications via phone or email these days has a cost that is close to zero.
B) a firm can say anything, but may actually do something different.
C) the cost of talking is far outweighed by the gains to be made in coordinating efforts.
D) firms avoid the costs of hiring lawyers.
B
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The horizontal axis of the aggregate demand and aggregate supply graph has the
a) the price level as measured by the CPI. b) unemployment rate. c) the price level as measured by the GDP deflator. d) output of goods and services.
The above figure shows the utility of wealth curve for a homeowner whose only possession is a $50,000 house. Which of the following statements is TRUE?
A) This person has diminishing marginal utility of wealth. B) This person is not risk averse. C) Risky situations cause this person no loss of utility. D) None of the above are correct.