The option-value principle can be roughly stated as "more choices can't make a person worse off.". Are there any exceptions to this rule? Choose all that apply.
a. No
b. Yes, in strategic situations.
c. Yes, in situations involving self-control.
d. Yes, for certain complicated financial derivatives.
b, c
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The reason protectionism remains strong in the United States is that
A) economists can produce any result they are hired to produce. B) economists cannot persuade the general public that free trade is beneficial. C) economists do not really understand how the real world works. D) the losses associated with protectionism are diffuse, making lobbying by the public impractical. E) economists cannot agree on trade policy recommendations.
Which of the following is exempt from taxation (a tax exemption)?
a. interest on a home mortgage b. interest from municipal bonds c. rent d. property taxes
The difference between the amount a seller receives for a good and the lowest amount for which he would sell the good is called
A) producers' surplus. B) windfall gain. C) consumers' surplus. D) excess profit.
Which statement is true?
A. Joseph Schumpeter said, "risk bearing is no part of the entrepreneurial function." B. Benjamin Franklin said, "It is better to borrow than to lend." C. Aristotle said, "the fair rate of interest is exactly what the market will bear." D. David Ricardo said, "the landlord's return, rent, should be taxed away by the government."