People are most likely to make their opinions on a potential piece of legislation known to their representatives when
A) the legislation matters greatly to them, whether or not it affects their private interests.
B) the legislation will affect their private interests substantially.
C) they believe their actions will make enough difference to justify the effort.
D) they can do so at low cost to themselves.
C
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Economic theory can predict or explain behavior
A) in the private but not in the public or government sector of society. B) most successfully in areas where behavior is largely guided by foresight and planning. C) only when behavior aims at maximizing net monetary revenue. D) when people behave selfishly rather than in the public interest.
A firm's decision to invest in a project is based on the
A) real interest rate and expected total revenue. B) nominal interest rate and expected total revenue. C) nominal interest rate and the expected profit. D) real interest rate and the expected profit.
Economic growth may overstate changes in the standard of living if
A) people are retiring at a younger age. B) the average workweek is increasing. C) the number of students attending college is increasing. D) expected life spans are increasing.
Although pollution is caused by a failure of the market, many economists believe that the best way to protect the environment is to utilize the price mechanism.
Answer the following statement true (T) or false (F)