Incentives are
A) potential rewards available if a particular activity is undertaken.
B) ineffective as a device to get people to behave in a certain fashion.
C) inappropriate ways to obtain a certain kind of behavior.
D) useless when people behave rationally.
Answer: A
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Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of
A) avoiding import quotas. B) increasing its gains from trade. C) dumping. D) engaging in learning-by-doing.
Which of these indicators is probably the most politically sensitive?
A) Housing starts B) Capacity utilization C) Employment D) Car sales
As disposable income increases, consumption:
A. and saving both increase. B. and saving both decrease. C. decreases and saving increases. D. increases and saving decreases.
Some goods can be either common resources or public goods depending on
a. whether the good is rival in consumption. b. whether the good is excludable. c. the marginal cost of the good. d. None of the above is correct.