Which of the following affects demand for money?
A) prices
B) nominal income
C) interest rate
D) all of the above
E) none of the above
D
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Which of the following is not true for a firm in perfect competition?
A) Price equals average revenue. B) Average revenue is greater than marginal revenue. C) Marginal revenue equals the change in total revenue from selling one more unit. D) Profit equals total revenue minus total cost.
Suppose Barbara looks out in the morning and sees a clear sky so decides that a picnic for lunch is a good idea. Last night the weather forecast included a 100% chance of rain by midday but Barbara did not watch the local news program
Is Barbara's prediction of good weather at lunch time rational? Why or why not?
According to the Laffer curve, an increase in marginal tax rates
a. reduces total tax revenue. b. increases total tax revenue c. reduces total tax revenue when marginal tax rates rise past a certain point. d. indicates that labor supply does not respond to changes in tax rates.
People will consistently sit through terrible movies at the theater instead of leaving early. This behavior makes no sense because it implies people are:
A. ignoring sunk costs, which is irrational. B. focusing on sunk costs, instead of thinking at the margin. C. thinking at the margin, instead of focusing on sunk costs. D. not thinking at the margin, which is rational.