Provide two examples of a monetary incentive and two examples of non-monetary incentive, a carrot and a stick of each, that government policies use to influence behavior
What will be an ideal response?
A monetary carrot that the students might answer because it is close to their lives is student aid, such as Pell grants. A monetary stick might be taxes on liquor. A non-monetary carrot is government support for youth sports, such as allowing little league teams to use a county park, and a non-monetary stick is jail terms for illegal drug or alcohol use.
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In the above figure, the marginal propensity to consume (MPC) equals
A) 0.9. B) 0.75. C) 0.8. D) 0.85.
If your income is $92,000 and you pay taxes of $19,475, what is your average tax rate? Show your work
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The rule of reason states that monopolies that behave well are still illegal. 2. Advertising is considered a form of product differentiation. 3. Oligopolies always produce differentiated products. 4. Price stability is common in oligopolies. 5. Perfect competition always provides a lower price than monopolistic competition or an oligopoly. 6. The Clayton Act prohibits price discrimination, if it substantially reduces competition. 7. A four-firm concentration ratio indicates the number of firms in the industry. 8. The Herfindahl Index is calculated by summing the squares of the market shares of each firm in the industry.
Opportunity cost is the
a. cost incurred when one fails to take advantage of an opportunity. b. cost incurred in order to increase the availability of attractive opportunities. c. cost of the best option forgone as a result of choosing an alternative. d. drudgery of the undesirable aspects of an option.