Which of the following is an example of mechanism design?
A. an employer pays all sales people a fixed salary
B. reduced prices on bulk purchases
C. health insurance with zero co-pays
D. welfare reform that limits the amount of time a person can collect benefits
Answer: D
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Of the following high-income countries, which has the highest obesity rate?
A) Canada B) Japan C) the United Kingdom D) the United States
Measuring important concepts in economics is difficult and some important economic phenomena are still beyond the understanding of economists. Thus economics is called a(n):
a. complex science. b. social science. c. inexact science. d. hard science.
Even though households do not actually purchase certain items, the government estimates and adds to the consumption component what the household would pay for these items in the marketplace. An example of this type of item is
a. a car that an individual builds from parts of old cars b. food that a farm family grows for themselves c. a pond that a household member digs by hand d. police and fire protection e. a barn that a household builds on their own property
Which of the following statements about an entrepreneur is true?
A) purchases other factors of production in the output market B) develops the vision for the firm and funds the producing unit C) sells his entrepreneurial services in the output market D) does not face personal risk