Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring. By using all available information as they act to achieve their goals,
these teachers are exemplifying the economic idea that
A) people are rational.
B) people respond to economic incentives.
C) optimal decisions are made at the margin.
D) equity is more important than efficiency.
Answer: A
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Based on the above figure, up to which level of output will Ike's Ice Cream Kitchen have increasing marginal returns?
A) only at 0 gallons B) up to 10 gallons C) up to 40 gallons D) up to 60 gallons
Which of the following is a fixed cost for Wendy's Hamburgers?
a. the cost of beef b. electricity to light up the Wendy's sign c. gasoline for the trucks that deliver supplies to the various franchises d. interest on funds borrowed to build new facilities e. expenditures on paper and plastic for packaging
In the long run, which of the following would shift the long-run Phillips curve to the right?
a. an increase in the minimum wage b. an increase in government spending c. an increase in the money supply d. a decrease in the money supply
Which of the following is an example of a negative externality?
A. planting flowers in your front yard B. talking loudly when others are trying to study economics C. people donating money to charity D. a smoker getting lung cancer