Which of the following statements is most consistent with the rule of rational choice?
a. "The Environmental Protection Agency should strive to eliminate virtually all air and water pollution."
b. "When evaluating new prescription drugs, the Food and Drug Administration should weigh each drug's potential health benefits against the potential health risks posed by known side effects."
c. "Police forces should be enlarged until virtually all crime is eliminated."
d. "Manufacturers of automobiles should seek to make cars safer, no matter the costs involved."
b
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Refer to Figure 9.7. After the policy, consumer surplus became
A) $0. B) $10. C) $20. D) $20,000. E) $40,000.
When businesses cooperate and agree to hold prices high, it is called ____________, and when they reach a noncooperative equilibrium it is called _______________.
A. collusion; competition B. competition; collusion C. commitment strategy; collusion D. collusion; commitment strategy
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
a. create unnecessary unemployment. b. shift in labor supply curve leftward. c. decrease the marginal product of labor. d. reduce management's use of featherbedding.
Which branch of economics is most likely to study differences in countries' growth rates?
A. normative economics B. macroeconomics C. experimental economics D. microeconomics