In order to have an efficient distribution of final products to households,
A. households must maximize their income.
B. there can be no unemployment.
C. the equity criterion must be satisfied.
D. free and open markets are essential.
Answer: D
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Among a set of alternatives with the same total costs, an individual is said to optimize if she chooses an alternative that has the:
A) highest total benefit. B) highest risk. C) lowest opportunity costs. D) highest net costs.
Social Security payments depend on an individual's wages, but the benefits formula is progressive.
Answer the following statement true (T) or false (F)
Which of the following events can not cause the labor-supply curve to shift?
a. a change in people's attitudes toward work b. an increase in the price of output c. a change in workers' alternative opportunities d. an increase in the rate of immigration
On an afternoon that a class meets, you could alternatively study for an exam that will take place in another class the next morning, go to a movie with a friend, or, most desirable to you at present, take a nap. The opportunity cost of attending the afternoon class is
A. missing seeing the movie with your friend. B. forgoing the nap. C. giving up the time to study for the next morning's exam. D. being unable to engage in all three of the above activities.