Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered normal?
A. Figure 1
B. Figure 2
C. Figure 3
D. Figure 4
Answer: B
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Between August 2007 and July 2008, Brazil exported more than 3.5 billion pounds of coffee to the rest of the world. These exports mean that
A) Brazil has comparative advantage in coffee production. B) the rest of the world has comparative advantage in coffee production. C) the rest of the world has absolute advantage in coffee production. D) Brazil has absolute advantage in coffee production.
The public-choice view states that
a. all governments are bad and should be abolished. b. macroeconomic policymakers are only interested in the social good. c. policymakers in the public sector work for the public, whereas policymakers in the private sector have private interests. d. macroeconomic policymakers act to maximize their own welfare rather than acting for the social good. e. both c and d.
Evan knows his GPA would skyrocket if he could break his horrible habit of procrastinating. An example of a commitment device Evan could use would be:
A. to allow himself one hour of leisure for every half-hour of studying he does each day. B. to exercise before studying in order to be refreshed. C. to pay a student to meet him each afternoon for 2 hours in the library to ensure he studies every day. D. All of these are commitment devices.
Under the pollution rights approach, polluters have little or no incentive to develop improved pollution abatement technologies
a. True b. False Indicate whether the statement is true or false