Behavioral economics extends traditional economic models by
A) including insights from psychology and human cognition models.
B) modeling behavior rather than prices.
C) admitting that individuals are irrational.
D) admitting that incentives are very important.
A
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Which of the following is an objective of government taxation?
A) Reducing the demand for money in the economy B) Increasing the supply of money in the economy C) Redistribution of funds D) Reducing the growth rate of the economy
In the specific factors model, which of the following will increase the quantity of labor used in food production?
A) an increase in the price of food relative to that of cloth B) an increase in the price of cloth relative to that of food C) a decrease in the price of labor D) an equal percentage decrease in the price of food and cloth E) an equal percentage increase in the price of food and cloth
Figure 18.2Refer to Figure 18.2. In autarky, the maximum amount of fishing poles that Macadamia can produce is:
A. 40. B. 100. C. 120. D. 160.
Explicit Costs
What will be an ideal response?