Which of the following is an example of thinking at the margin?
(A) Deciding to buy a car you don't really like because it is significantly less expensive than the one you want.
(B) Putting all of your money in a savings account because the interest rate is so high.
(C) Determining whether it is better to spend your savings on a new CD player or on a television.
(D) Deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time.
Ans: (D) Deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time.
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Use two or three of the things we "know" about economic development to comment on the state of our knowledge
What will be an ideal response?
Money is the most liquid asset available because
a. it is a store of value. b. it is a medium of exchange. c. it is a unit of account. d. it has intrinsic value.
One purpose of patents is to ______ invention.
a. encourage b. discourage c. replace d. advertise
A country can actually improve its well-being if it is in a position to impose a non-zero "optimal tariff." Explain what an optimal tariff is, what conditions must be in place to implement an optimal tariff, and how such a tariff will increase national welfare. Assuming a country could impose an optimal tariff, would you suggest it do so? Justify your answer.
What will be an ideal response?