When economists observe someone make a choice, they assume the individual chooses:
A. what is the most efficient choice.
B. what gives her the least utility.
C. what creates the most utility for society.
D. what gives her the most utility.
Answer: D
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A variable that is potentially affected by an experimental treatment is referred to as a(n):
A) compulsory variable. B) omitted variable. C) independent variable. D) dependent variable.
The way in which a corporation is structured and the impact a corporation's structure has on the firm's behavior is referred to as
A) structural behavior. B) corporate governance. C) structure composition theory. D) corporate taxation.
Raul Prebisch was an Argentine economist who argued that
A) the terms of trade would decline for primary commodity exports. B) the terms of trade would decline for manufactured goods exports. C) the terms of trade for Latin American economies could not be improved. D) the terms of trade for high-income countries would inevitably worsen.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
Demand for the new drug is ________ while demand for one brand of the over-the-counter pain relievers is ________.
A. the horizontal line at $60; the line labeled B B. the line labeled B; the line labeled A C. the line labeled A; the line labeled B D. the vertical line at 100; the line labeled A.