An incentive is:
A. the marginal cost of engaging in a course of action.
B. the marginal benefit of engaging in a course of action.
C. something that causes people to behave in a certain way by changing trade-offs they face.
D. rational behavior that involves thinking on the margin.
C. something that causes people to behave in a certain way by changing trade-offs they face.
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The movement to set up a central bank in the United States was spurred by the financial panic that occurred in
A) 1816. B) 1907. C) 1929. D) 1987.
Gross Domestic Product is the market value of
a. all exchanges made during the course of a year b. all final goods produced during the course of a year c. all monetary transactions during the course of a year d. all the goods produced during the course of a year over and above what is required to maintain the population and the stock of capital e. all final goods sold during the course of a year
Assume that Michaela purchases $12,000 worth of a stock. To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0% interest rate. If the stock's value increases by 20% in one year and she sells the stock at that time, what is her rate of return?
a. 13% b. 16% c. 20% d. 80%
What controls the price that natural monopolies charge so that it will be a "fair price"?
A. Consumers B. Competition C. Regulatory boards D. Patents