Which of the following is part of the economic way of thinking?
a. The accuracy of the assumptions is the best test of an economic theory.
b. When an option becomes more expensive, people will be less likely to choose it.
c. The value of a good can be determined objectively by measuring the amount of labor required for its production.
d. All of the above.
B
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The factor that ultimately determines the change in the stock of capital, the level of real wages, and the output of an economy is
A) GDP. B) the labor force. C) the unemployment level. D) net investment.
If the law of diminishing marginal utility applies, then the marginal utility of my tenth pistachio nut is less than the marginal utility of my third pistachio nut
Indicate whether the statement is true or false
Sharon works for a company that provides a 2% match if she puts 6% of her income into a 401(k) retirement account. What will this investment model mean for her future retirement income?
a. Because this investment is made in pretax dollars, Sharon’s current taxable income will be lower. b. Her taxable income will be higher now, but she will be eligible for 401(k) tax breaks when she retires. c. Because this investment is made in pretax dollars, her retirement account will earn more money for the future. d. Because of the company match, Sharon will need to roll her 401(k) over into an IRA before retirement to take advantage of any tax benefit.
Ceteris paribus, which of the following is most likely to cause a decrease in the supply of skateboards?
A. An increase in the cost of materials used to produce skateboards. B. An increase in the price of skateboards. C. An improvement in skateboard-making technology. D. All of the choices are correct.