Producers of computer software are plagued with the problem of “pirating,” that is, many people copy software legally purchased by others. The industry estimates that for each legal copy of a program, there are two pirated copies in use. The industry wants strict laws for the enforcement of its “intellectual property rights,” but enforcement is obviously very difficult. Economists call this problem
A. depletability.
B. externality.
C. durability.
D. nonexcludability.
Answer: D
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When the consumption schedule is plotted on a graph,
A. consumption is on the horizontal axis and disposable income is on the vertical axis. B. consumption is on the horizontal axis and saving is on the vertical axis. C. consumption is on the vertical axis and saving is on the horizontal axis. D. consumption is on the vertical axis and disposable income is on the horizontal axis.
Politicians often highlight the plight of a single individual as a reason to support a particular project or agenda. In this case, politicians are using
A) the Khaneman effect. B) the Allais effect. C) framing. D) prospect theory.
Economics deals with
A. how society allocates unlimited resources. B. how individuals allocate scarce resources to satisfy unlimited human wants. C. how to profit from the stock market. D. how to satisfy limited human wants.
The sometimes inconsistent results coming from a series of paired-choice voting is due to:
A. Voters changing their preferences B. Irrational preferences among some voters C. A normal consequence of majority voting D. Voters not having a good idea of their preferences