Economists call the pursuit of a transfer of wealth through government at someone else's expense:
A. the paradox of voting.
B. adverse selection.
C. rent-seeking behavior.
D. the benefits-received principle.
Answer: C
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Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?
A firm is more likely to produce its own input if all of the following are true except which one?
A) The firm has trade secrets. B) The firm experiences economies of scale when producing the input. C) The firm is concerned about quality control. D) The transportation cost of the input is inexpensive.
Which is NOT an example of signaling high quality in a social setting
a. wearing everyday clothes to a job interview b. leaving a big tip for the waiter after a dinner date c. offering an expensive engagement ring to your bride d. Visiting the beauty salon before a big date
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of
a. marginal decision making. b. basing decisions on total, rather than marginal, value. c. an unintended consequence. d. the fallacy of composition.