A key assumption of most economic analysis is that people act rationally, meaning they respond to incentives
Indicate whether the statement is true or false
TRUE
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The figure shows the market for books before and after a sales tax is introduced. Each week, the tax creates a deadweight loss of ________, decreases consumer surplus by ________, and decreases producer surplus by ________
A) $15; $10; $5 B) $12; $8; $4 C) $3; $10; $5 D) $3; $2; $1
If $1000 was deposited in a bank and the reserve requirement is 0.10, how much is available for loans?
A) $900 B) $910 C) $920 D) $930
Suppose that households and businesses increase autonomous expenditures, driving output well above potential. Describe, in detail, how monetary policy might react to minimize the increase in inflation
What will be an ideal response?
A person's judgments are based on the value meanings derived from feelings, this is known as:
a. Affective domain b. Cognitive domain c. Construct domain d. Clarification construct