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Author Question: Each member in a group might do what's best for himself or herself instead of behaving in a way that ... (Read 73 times)

rosent76

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on: Jun 29, 2018
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.
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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pikon

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

A


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rosent76

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Reply #2 on: Jun 29, 2018
Thank you :)


pikon

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Reply #3 on: Jun 29, 2018
Happy to help you


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