An example of someone who irrationally considers sunk costs when making a decision is most likely:
A. someone who paid $50 for a ticket to a baseball game and ends up sitting through the entire game in the freezing rain without a jacket.
B. a family that pays $20 to enter a state park for the day and stays all day.
C. someone who paid $50 for a ticket to a baseball game and ends up sitting through the entire game enjoying himself.
D. a family that pays $20 to enter a state park for the day and leaves after an hour.
Answer: A
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Which of the following is not an example of rent-seeking behavior?
A) competition for subsidies B) competition for the exclusive right to import a product C) lobbying the government to impose tariffs on certain imported products D) engaging in aggressive advertising that slams a competitor's product
Which of the following economic functions does the U.S. government perform?
A. collects taxes B. provides services C. issues regulations D. The U.S. government performs all of these tasks
Aniella believes that the demand for unskilled labor is relatively inelastic. Carmella believes that the demand for unskilled labor is relatively elastic. Which is an advocate of minimum-wage laws?
Payments by the government to the public for which the government receives no current goods or services in return are called:
A. capital losses. B. net taxes. C. public saving. D. transfer payments.