What do economists mean by the “rule of rational choice”?
What will be an ideal response?
The rule of rational choice is that in trying to make themselves better off, people alter their behavior if the expected marginal benefits from doing so outweigh the expected marginal costs they will bear. If the expected marginal benefits of an action exceed the expected marginal costs, a person will do more of that action; if the expected marginal benefits of an action are less than the expected marginal costs, a person will do less of that action.
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The largest rent subsidy program provides what is called ______
a. Section 6 housing. b. Section 8 housing. c. public housing d. AFCD housing
The Lorenz curve is criticized for all of the following EXCEPT
A) that it excludes transfers-in-kind income. B) that it does not account for the size differences of households. C) that it does not account for age differences of households. D) that it does not account for the impact of trade on the standard of living.
Interest payments in the United States increased during the 1980s because of: a. growing federal deficits
b. a low tax rate. c. growing budget surpluses. d. a fall in government expenditure. e. an increase in national savings.
Attempts by the government to reduce the rate of inflation often result in higher unemployment in the short run.
Answer the following statement true (T) or false (F)