For some products, quality is virtually impossible to determine prior to purchase. If sellers of such commodities are rational, they will cheat or engage in unethical behavior only when:
A. production exhibits positive externalities.
B. laws allow unethical behavior.
C. the expected gains are greater than the expected costs.
D. the expected gains are equal to the expected costs.
Answer: C
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The major reasons why people immigrate into the U.S. include the following, except:
A. Taking advantage of superior economic opportunities B. Escaping religious or political oppression in their home countries C. Reuniting with family members who are already U.S. immigrants D. Being kicked out of their home countries
Many economists believe that
a. the corporate income tax satisfies the goal of horizontal equity. b. the corporate income tax does not distort the incentives of customers. c. the corporate income tax is more efficient than the personal income tax. d. workers and customers bear much of the burden of the corporate income tax.
Consumption is a function of _____.
Fill in the blank(s) with the appropriate word(s).
What might happen if the market price for haircuts increased?
A. Some hair salons might hire more stylists. B. Some salons might close. C. Cutting hair would be less profitable. D. Some stylists would work fewer hours.