If policymakers impose import restrictions on clothing, the U.S. trade deficit will shrink
a. True
b. False
Indicate whether the statement is true or false
False
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Explain the potential costs of high-powered incentives by considering the case of providing incentives to police officers. Would it be a good idea to pay higher wages to police officers if they make more arrests?
What will be an ideal response?
When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behavior is called
A) increase in quality bias. B) outlet bias. C) substitution bias. D) discrimination bias.
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. All of the resource earnings in market A are opportunity costs. b. All of the resource earnings in both markets are opportunity costs. c. All of the resource earnings in market B are opportunity costs. d. None of the resource earnings in either market is an opportunity cost. e. None of the resource earnings in either market is economic rent.
Which of the following is a decision that economists study?
a. how much people work b. what people buy c. how much money people save d. All of the above are correct.