The Cost-Benefit Principle:
A. provides little insight into how people actually chose between alternatives.
B. provides an abstract model of a rational person should choose between alternatives.
C. describes how people behave once they have enough education.
D. fully captures how people choose between alternatives.
Answer: B
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Explain what a black market is and how it functions. What is a black market generally a response to?
What will be an ideal response?
Transfer payments, like Social Security, are known as entitlements since ________
A) they are locked up by earlier legislation B) the individuals who receive these payments are poor and deserve our support C) the individuals who receive these payments made payments to the federal government in excess of the monies they draw from the system D) these monies tend to rise in an economic downturn
In the long-run, monopolistically competitive firms:
A. have excess capacity. B. produce at the minimum of average total cost. C. charge prices equal to marginal cost. D. both B and C are true.
Which of the following would be considered a factor of production in the provision of bus service?
A. The amount it costs to provide bus service between two locations B. The hourly wage paid to bus drivers C. The revenue from the sale of bus tickets D. Bus drivers