Which of the following is a common mistake consumers commit when they make decisions?
A) They take into account nonmonetary opportunity costs but ignore monetary costs.
B) They sometimes value fairness too much.
C) They are overly pessimistic about their future behavior.
D) They fail to ignore sunk costs.
D
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In order to derive a market demand curve from individuals' demand curves, we add up the
A. incomes of all buyers, assuming that their tastes remain constant. B. various individuals' quantities demanded at each price. C. various prices that each buyer is willing and able to pay. D. total number of buyers in the market at each time period.
The capture theory of regulation predicts that
A) regulation helps producers to maximize profits. B) regulators capture the firm's economic profit and transfer it to consumers as consumer surplus. C) regulators eliminate the deadweight loss a monopoly can create. D) resources are used efficiently. E) regulators capture the firm's economic profit and transfer it to themselves.
Which of the following marginal costs might be incurred if society chose to pursue a zero-tolerance policy regarding crime?
a. Education funds would be diverted to crime prevention. b. Individual privacy protections would be strengthened. c. People would have to begin growing their own food. d. Fewer scarce resources would be used for prisons.
When a central bank aggressively tries to contain inflation via contractionary monetary policy, which condition is most likely to occur?
A. Inflation B. Disinflation C. Deflation D. Underinflation