Emotions like guilt and sympathy:
A. reduce the likelihood that a transaction will maximize total economic surplus.
B. can solve commitment problems, but generally reduce players' payoffs.
C. are irrelevant to economic decision-making.
D. can solve commitment problems.
Answer: D
Economics
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When drawn against the real interest rate, the output supply curve unambiguously shifts to the right if
A) current capital decreases. B) current total factor productivity decreases. C) future total factor productivity decreases. D) current or future taxes increase.
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An example of economic integration in the Western hemisphere that created a free-trade zone is the:
A. North American Free Trade Agreement B. Reciprocal Trade Agreements Act C. North Atlantic Treaty Organization D. World Trade Organization
Economics