If people start to buy more expensive fuel-efficient cars rather than cheaper SUVs, even though the additional cost of fuel-efficient cars is greater than the savings in gas over the life of the car, this would be explained by which of the following types of models?
A. Empirical models using regression analysis
B. Path-dependent models
C. Heuristic models using traditional building blocks
D. Heuristic models using behavioral building blocks
Answer: D
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If two individuals voluntarily agree to a transaction that only affects them (and no one else), it must be that the transaction is efficient.
Answer the following statement true (T) or false (F)
A quota is a
a. tax imposed on each unit of an exported good b. tax imposed on each unit of an imported good c. change in the terms of trade between two nations d. result of opportunity cost differentials between two nations e. restriction on the quantity of a good that may be imported
In December of 2007, with an unemployment rate of 5.0 percent, most economists believed this was above the natural rate
a. True b. False Indicate whether the statement is true or false
A labor union composed of workers in the same occupation is called
A) a craft union. B) an industrial union. C) a company union. D) a closed shop.