Author Question: Each member in a group might do what's best for himself or herself instead of behaving in a way that ... (Read 37 times)

rosent76

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Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire group. This gives rise to the problem of:
 
  A) Pareto inefficiency.
  B) free riding.
  C) irrational behavior.
  D) disequilibrium.

Question 2

Suppose Stan transfers 1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
 
  A) M1 increases; M2 remains the same.
  B) M1 decreases; M2 increases.
  C) Both M1 and M2 increase.
  D) Both M1 and M2 decrease.
  E) Both M1 and M2 remain the same.


pikon

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Answer to Question 1

B

Answer to Question 2

A



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