Author Question: When consumers act as price-takers, we say that they behave A) cooperatively. B) competitively. ... (Read 92 times)

xclash · **on:** Jun 30, 2018

When consumers act as price-takers, we say that they behave

A) cooperatively.
B) competitively.
C) monopsonistically.
D) irrationally.

Question 2

When there are credit market frictions, Ricardian equivalence may not hold because

A) consumers cannot understand the implications of the government budget constraint.
B) a tax cut in the present with a future increase in taxes works effectively like a loan.
C) an increase in government saving is matched one-for-one by a decrease in private saving.
D) social security is fully-funded.