Which of the following mistakes do consumers commonly commit when making decisions?
a. They take into account monetary costs but ignore nonmonetary opportunity costs.
b. They fail to ignore sunk costs.
c. They are unrealistic about their future behavior.
d. All of the above are mistakes consumers commonly commit when making decisions.
d. All of the above are mistakes consumers commonly commit when making decisions.
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A major problem that may occur with models that predict the values of economic variables in the future is that
a. researchers are pessimistic about the future. b. the model may fail to acknowledge that economic actors will change their behavior in response to changing situations. c. the model may make predictions that conflict with widely held opinions. d. no one cares about these predictions.
Income elasticity of demand is expected to be _____
a. relatively high for necessities b. positive for most products c. relatively low for luxuries d. negative for most products e. zero for most products
How do critics of stabilization policy view the "political business cycle"?
a. They suggest shorter election cycles would improve stabilization. b. They believe that politicians cause economic instability, due mainly to the election schedule. c. They believe that the Fed can resist political pressure and stabilize the economy. d. They believe that politicians do not know enough economics in order to stabilize the economy.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. Micro Oven's average fixed costs of producing two units of output are
A. $150. B. $300. C. $450. D. indeterminate from this information.