Electric utilities sometimes charge higher prices for electricity used for illumination and lower prices for electricity used for heat. These lower prices for electric heat result primarily from:
A. economies of scale in electric heat generation.
B. the existence of good heating substitutes.
C. prices for electric heat being set at the socially optimal level.
D. strict government regulation of the price charged for electric heat.
Answer: B
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The unemployment rate tells us
A) the fraction of people who want to be working but are not. B) the fraction of people who are not working and do not want to be working. C) the fraction of people who are not working and have quit looking for jobs. D) all of the above
When a consumer's willingness to buy a good or service is influenced by the number of people who have purchased that good or service, this is called
A) a switching cost. B) an opportunity cost. C) a network effect. D) an advertising gimmick.
In the 1990s, Fed Chairperson Alan Greenspan questioned whether the stock market
a. boom at that time reflected "irrational exuberance.". b. decline at that time reflected "irrational funk.". c. boom at that time reflected "rational exuberance.". d. decline at that time reflected "rational funk.".
The income of the household lying at the exact middle of the income distribution is:
a. mean household income. b. median household income. c. modal household income. d. second quintile household income.