Johnny spends his day doing a variety of activities; he spends the morning exercising and doing yard work, reads in the afternoon, and hosts a dinner party in the evening. Economists would say his choice to do a variety of activities instead of spending all of his time on one activity illustrates the concept of:
A. tastes and preferences
B. income effect
C. diminishing marginal utility
D. budget constraints
Answer: C
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All of the following encourage increases in technological progress EXCEPT
A) closed economies. B) larger markets through free trade. C) the possibility of monopoly profits. D) the ability to patent a new invention.
The changes contained in the Tax Relief Act of 2001 included
A. More tax brackets to increase vertical equity. B. A partial shift from corporate to personal taxes. C. New loopholes to encourage education D. Narrowing the tax base.
The primary purpose of WTO is to:
A. protect the United States from cheap foreign labor. B. foster trade among nations. C. promote the dumping of foreign products. D. increase worldwide tariffs.
If a nation starts out with very little capital
A. it is doomed to eternal poverty because it will not be able to divert productive resources from producing consumer goods to producing capital goods. B. it can quite easily divert some resources from producing consumer goods to producing capital goods. C. if it possesses a valuable commodity that the industrial world wants such as oil, it can sell its oil in exchange for plant and equipment and thus industrialize. D. None of the choices are true.