Behavioral economists have found that:
A. only market prices matter when people make decisions.
B. people are always irrational when considering incentives.
C. markets are the best way to organize mutually beneficial exchanges.
D. design mechanisms must take social factors as well as price into account.
Answer: D
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Which statement is true?
A. William Julius Wilson and Charles Murray are basically in agreement about the causes of the formation of a permanent underclass. B. The permanent underclass has more white members than black members. C. There is very little evidence to show that there is actually a permanent underclass. D. There are more poor whites than poor blacks in the United States.
The future value of $500 saved for two years at an interest rate of 5% is
a. $550.25. b. $550.00. c. $551.25. d. None of the above are correct.
Entrepreneurship
A. Can result in economic losses. B. Always involves greater rewards than risks. C. Occurs in small businesses, but not large corporations. D. Cannot earn an economic profit.
How might a law setting minimum wage below the equilibrium point have an unintended effect?
A) The effect might be less demand for workers. B) The law might result in wages lower than the equilibrium wage. C) The actual wages earned by workers might be higher than the equilibrium. D) The equilibrium point might shift upward in response to the minimum wage law.