In making your decision whether to take a trip during spring break, you compare all the other activities you could undertake. As a result, you
A) are not making a rational choice.
B) must have made a choice in the social interest.
C) limit the cost and the benefits you can gain.
D) are making a choice on the margin.
E) do not face an opportunity cost.
D
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When a supplier imposes resale price maintenance on its dealers, social gain will increase as long as
a. the supplier chooses to charge a competitive price for its product. b. the value consumers receive from dealer services outweighs their cost. c. dealers are allowed to charge consumers less than the supplier's recommended retail price. d. dealers are able to enter and exit the industry costlessly.
Which of the following is a measure of economic growth that is most useful for measuring changes in the overall size of an economy?
A. decreases in the rate of unemployment B. increases in real GDP C. increases in real GDP per capita D. growth in nominal GDP
The term "future value"
A. can be determined by inverting the formula for present value. B. is not used in modern public finance analysis. C. refers to the present value of future money. D. includes the shadow prices of all goods used in a project.
Most economic models
a. incorporate the assumption of rational behavior on the part of economic actors. b. incorporate the notion that people are usually reluctant to change their minds. c. are meant to precisely duplicate reality. d. assume that people often make sub-optimal choices.