Suppose that the local health board discovers some unsanitary conditions at your favorite sushi restaurant. An economist would likely have what to say about this situation?
A) "All unsanitary conditions at this restaurant must be eliminated."
B) "The restaurant owner obviously cares more about profits than about his customers."
C) "No one should eat at this restaurant due to the potential health hazard."
D) "Eliminating all of the unsanitary conditions might cost more than the value of the benefits that would be gained."
D
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What happens to the likelihood of a volunteer being found as the group of potential volunteers grows if the diffusion effect is greater than the size effect?
What will be an ideal response?
An attempt by a central bank to alter the money supply by buying or selling domestic assets
A) will leave both domestic money supply and foreign reserves unchanged. B) will cause an offsetting change in aggregate demand. C) will lead to a rise in domestic employment and output. D) will lead to a decrease in domestic employment and output. E) will cause an offsetting change in foreign reserves and leave the domestic money supply unchanged.
The budget deficit refers to how much has been borrowed:
a. in one particular year. b. over time. c. against Social Security. d. to pay interest on loans.
If the goal of the union is to maximize member income, then
A) a wage rate will be set in the inelastic portion of the demand curve. B) a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive. C) a wage rate will be set at the point at which marginal revenue equal zero. D) the supply of labor must be inelastic.