Which of the following is the definition of the endowment effect?
a. being unrealistic about the future in our present decision making
b. making decisions based on our innate sense of fairness
c. making decisions based on pieces of information we have already received
d. valuing something we own more than other people do
d. valuing something we own more than other people do
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Which of the following is part of the cost of income transfers?
A) Tax-collecting agencies cost money to administer. B) Taxing incomes encourages people to work harder. C) Income transfers make the results more unfair. D) Income transfers increase the size of the economic pie. E) Income transfers are a similar to allocating resources using a lottery.
Suppose the following two events occur in the domestic market for radiologists:
a. Some hospitals are outsourcing some radiology services such as reading x-rays. b. Some medical schools have closed down their radiology departments as fewer students enroll in this field. What is likely to happen to the equilibrium wage and quantity of radiologists following these two events? A) The equilibrium wage falls and the effect on equilibrium quantity of radiologists is indeterminate. B) The equilibrium wage and the equilibrium quantity of radiologists fall. C) The equilibrium wage and the equilibrium quantity of radiologists rise. D) The equilibrium quantity falls and the effect on the equilibrium wage of radiologists is indeterminate.
Since the 1970s, the income tax system in the U.S. has become
a. less regressive. b. more aggressive. c. less progressive. d. regressive e. more proportional.
Which of the following concepts are illustrated by the production possibilities curve?
a. scarcity b. choice c. trade-offs d. all of the above