In the long run, higher government budget deficits will
A) lead to a redistribution of real GDP from privately produced goods and services to government produced goods and services.
B) lead to a redistribution of real GDP from government produced goods and services to privately produced goods and services.
C) cause the price level to go down on government goods but not on private goods.
D) lead to a reduction in the amount of goods and services produced by the government and private sector.
A
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Suppose that, instead of taking this test, you could either have worked and earned income or partied and had a pleasurable time. Your opportunity cost of taking the test is the
A) forgone work. B) forgone party. C) forgone working and partying. D) forgone working or partying, depending on which was your next best choice. E) test because you are taking it.
The responder in an ultimatum game is likely to reject an offer of 10% of $1 but is less likely to reject an offer of 10% of $100. What is the reason behind such inconsistent behavior?
What will be an ideal response?