If race-car driving is dangerous, why would any rational person choose to be a race-car driver?
A rational person might choose to drive race cars if, after assessing the potential dangers, he or she believes the expected marginal benefit from racing outweighs the expected marginal cost.
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One reason that some criticized government price regulations was ______________, where the regulated ended up playing a large role in setting the regulations that were intended to control them.
a. regulatory capture b. regulation apprehension c. legal backtreading d. government abandonment
Due to global warming, a country's climate has changed over the years. 30 years ago, it used to rain for almost three months. However, for the past two years, the rainy season has hardly lasted for two weeks. If this change in climate adversely affects agricultural productivity and crop yield, it will cause: a. the long-run aggregate supply curve to shift rightward
b. the long-run aggregate supply curve to shift leftward. c. an upward movement along the long-run aggregate supply curve. d. a downward movement along the long-run aggregate supply curve.
When the price of NBA tickets is $25 each, 30,000 tickets are sold. After the price rises to $30 each, 20,000 tickets are sold. At the original price, the demand for NBA ticket is:
A. elastic. B. perfectly elastic. C. inelastic. D. unit elastic.
Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of
a. frictional unemployment created by sectoral shifts. b. frictional unemployment created by efficiency wages. c. structural unemployment created by efficiency wages. d. structural unemployment created by sectoral shifts.