An incentive is

A) a reward or a penalty that encourages or discourages an action.
B) when people make rational choices by comparing costs and benefits.
C) what you must give up to get something.
D) a choice is made on the margin.
E) a good or service that satisfies wants.


A

Economics

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Coal-fired steam locomotives become more efficient for railroads relative to oil-burning diesel locomotives as

A) the price of coal increases. B) the price of oil increases. C) coal-fired steam locomotives become larger. D) railroad freight rates increase.

Economics

In financial markets, when a firm issuing new securities has previously issued securities, these securities are called

A) seasoned issues. B) an initial public offering. C) secondary issues. D) investment-grade issues.

Economics

Which of the following is an example of trade policy at the national level?

a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.

Economics

The U.S. government sets a minimum wage, which is a:

a. price floor. b. price ceiling. c. point of equilibrium. d. recommended level.

Economics