Which of the following statements best reflects how a behavioral economist views individual decision making?
A. Alex makes wrong decisions sometimes, but usually it is only when he has been given bad
information.
B. Kara carefully calculates and weighs the expected benefits and costs of every option
before making a decision.
C. Alicia may appear to care about others, but even her seemingly altruistic behaviors are
really about furthering her own interests.
D. Balin tries to make good, well-thought-out decisions, but his desire for utility in the present
means that he often gives in to costly temptations.
Answer: D
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The government deficit is equal to
A) new money created minus new borrowing from the public. B) new borrowing from the public plus new money created. C) new borrowing from the public divided by new money created. D) new borrowing from the public minus new money created.
A characteristic of a public good is that a public good is provided
A) to some businesses, but not to others. B) only in some states. C) to low income residents in some states. D) to many individuals at no additional cost.
Refer to the information provided in Table 19.5 below to answer the question that follows. Table 19.5Total IncomeTotal TaxesAverage Tax RateMarginal Tax Rate$10,000$1,500??$20,000$2,400??$30,000$3,000??$40,000$3,200??Refer to Table 19.5. The tax rate structure in this example is
A. regressive. B. progressive. C. proportional. D. marginal.
The seller passes on the entire tax to the consumer when demand is _____.
Fill in the blank(s) with the appropriate word(s).