When a motorist speeds down the road at well above the posted limit, economists believe that the principle of ____ may be directing his actions
a. rent seeking
b. defective telescopic faculty
c. moral hazard
d. resource misallocation
c
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The above figure shows the market for pizza. The market is in equilibrium when people learn that eating pizza helps prevent heart disease. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E
A backward-bending supply curve of labor implies that
a. if the wage rate offered keeps increasing, at some point, workers will work fewer hours in response to an increase in the wage rate b. the firm can hire any quantity of workers it wishes provided it pays back workers for the lower wage rate it offered c. at higher wage rates, workers will go back to work (overtime) during their off hours d. income and work hours are regarded as back-to-back payments for labor e. wage rates are not an important consideration in the work decision
Which one of the following would cause an increase in the demand for hotel rooms in Hawaii?
A) an increase in airfares to Hawaii B) a decrease in airfares to Hawaii C) an upward movement along the demand curve for stays in Hawaiian hotel rooms D) a downward movement along the demand curve for stays in Hawaiian hotel rooms
The Taylor rule predicted a federal funds rate which was ________ that set when Paul Volcker was chairman of the Fed, and a rate which was ________ that set when Arthur Burns chaired the Fed
A) greater than; equal to B) greater than; less than C) less than; equal to D) less than; greater than