Economists are particularly adept at understanding that people respond to
a. laws.
b. incentives.
c. punishments more than rewards.
d. rewards more than punishments.
b
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Which of the following statements is true?
A) It is easier for a person to optimize when he has less information. B) Optimization implies choosing the best option from a set of alternatives. C) People always successfully optimize given the limited information they have. D) Optimization is an easy process, and all economic agents are perfect optimizers.
What is the relationship between price, marginal revenue, and total revenue for a monopolist?
What will be an ideal response?
A belief that high-tech companies would be highly profitable led to the boom in Internet companies in the 1990s, which is known as a(n):
a. investment shock. b. investment boom. c. technology surge. d. technology reversal.
The points outside the production possibilities frontier are
A) efficient. B) attainable. C) inefficient. D) unattainable.