Behavioral economics suggests that people face human limitations that prevent them from examining every possible choice available to them, with the implication that
A) the consumer optimum implied by utility theory is an inappropriate approach to deriving demand curves.
B) the consumer optimum implied by utility theory is an appropriate approach to deriving demand curves.
C) marginal utility is always equal to zero.
D) marginal utility is always negative.
Answer: A
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The purchase of an airplane produced in the United States by the government of Thailand is included in
A) U.S. imports. B) U.S. government purchases. C) U.S. exports. D) Thailand government exports.
One of the necessary conditions for price discrimination to occur is that:
a. buyers in different markets have different elasticities of demand. b. the demand curve is upward sloping. c. buyers must be allowed to resell the good at a higher price elsewhere. d. all of these are necessary for price discrimination to occur.
The production possibilities curve illustrates: a. the minimum quantity of two resources necessary to produce a given level of output
b. that when resources are currently being used inefficiently, it is possible to increase production of one good only by sacrificing some of another good. c. that when resources are currently being used efficiently, it is possible to increase production of one good only by sacrificing some of another good. d. the minimum quantities of output that can be produced using available resources.
Rent controls are examples of which of the following?
a. price ceilings b. price floors c. equilibrium prices d. subsidies