Many people donate to charity and leave tips to servers in restaurants even when they will never visit the restaurant again. Economists consider this type of behavior to be
a. irrational because these actions make people worse off financially.
b. rational because it shows that people value fairness even when this behavior makes people worse off financially.
c. rational only if other people observe this behavior.
d. All of the above are consistent with the general view of fairness
b. rational because it shows that people value fairness even when this behavior makes people worse off financially.
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Which of the following is the main cause of the persistent inflation that we have experienced in the United States?
A) supply-side inflationary factors B) demand-side inflationary factors C) a combination of supply- and demand-side inflationary factors D) supply-side secularity factors
Given that the firm wants to sell both the versions, how much surplus does buying the no-name brand give the professional chefs?
a. $30 b. $40 c. $50 d. $60
Recent immigration (legal and illegal) has a high proportion of low skilled workers. What are the economic effects of the increase in low skilled workers?
a. lower wages in low skill jobs and higher costs to middle and upper income households of services such as housekeeping and lawn care b. higher wages in low skill jobs and lower costs to middle and upper income households of services such as housekeeping and lawn care c lower wages in low skill jobs and lower costs to middle and upper income households of services such as housekeeping and lawn care d. lower wages in low skill jobs and higher costs to middle and upper income households of services such as housekeeping and lawn care
Which of the following is not a cost per unit produced?
a) Total cost; b) Marginal cost; c) Average variable cost; d) Both (a) and (b) are not unit costs.