According to economists, when two people make exactly the opposite decision
A. one of them is acting out of spite.
B. one of them should compromise.
C. one of them is acting irrationally.
D. each person evaluates the situation according to his/her individual self-interest.
Answer: D
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Refer to the above figure. If real GDP is $4 trillion, then
A) actual investment spending equals $1 trillion as planned investment spending plus unplanned inventory increases equal $1 trillion. B) consumption expenditures are too low. C) unplanned inventories will decrease. D) unplanned inventories will increase.
Total cost of production refers to the:
A) sum of variable costs and fixed costs. B) product of variable costs and fixed costs. C) difference between variable costs and fixed costs. D) ratio of variable costs to fixed costs.
Behavioral economics refers to the study of situations
A) where consumers and firms appear to value fairness when they make choices. B) where consumers and firms disobey the laws of demand and supply. C) where consumers and firms appear to make choices that are appropriate to reach their goals. D) where consumers and firms do not appear to be making choices that are economically rational.
When a union raises the wage above the equilibrium level,
a. both the quantity of labor supplied and unemployment rise. b. both the quantity of labor supplied and unemployment fall. c. the quantity of labor supplied rises and unemployment falls. d. the quantity of labor supplied falls and unemployment rises.