A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A) cynical behavior in modern democracies.
B) failing to consider the alternatives available to the government.
C) a concern that people are not rational when they make decisions.
D) using incentives to alter behavior.
D
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The M1 measure of the money supply equals
A) currency plus checking account balances plus traveler's checks plus savings account balances. B) currency plus checking account balances plus traveler's checks. C) currency plus checking account balances. D) paper money plus coins in circulation.
The demand for labor of a perfectly competitive producer: a. is perfectly elastic at the going wage rate
b. is downward sloping because prices fall when the producer increases output. c. is downward sloping because of diminishing marginal productivity. d. is downward sloping because prices fall when the producer increases output and because of diminishing marginal productivity.
A microeconomist might study which of the following?
a. how inflation changes over time for several countries b. how money supply aggregates are measured c. economic growth in less-developed countries in Africa d. the relationship between aggregate income and aggregate personal consumption e. why wages for females are lower than for males in a particular labor market
Sunk costs are irrelevant for decisions about future actions because ______.
a. the money has been spent and cannot be recovered to use again b. the money has not been spent yet, so the amount is not known c. they only affect a firm in the short run, not the long run d. they may or may not be applicable under future conditions