Jim enjoys the feeling of wind in his hair enough to ride his motorcycle without a helmet, even though he fully realizes the potential for injury it creates by not wearing one in the unlikely event he is in an accident. To an economist, Jim is
a. making an irrational choice.
b. making a rational choice.
c. not fully considering the personal costs and benefits of his decision.
d. not responding to the incentives he faces.
B
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A textile manufacturing unit faces low productivity due to shirking by workers. Which of the following is a possible solution to increase productivity and retain employees?
A) The provision of a lower real wage B) The provision of a lower nominal wage C) The provision of minimum wages D) The provision of efficiency wages
The excess burden of taxation can be minimized by _____
a. placing taxes on goods with elastic demand schedules b. placing taxes on goods with inelastic demand schedules c. placing taxes on goods with elastic supply schedules d. placing taxes on goods with inelastic supply schedule e. b and d
Juanita has just started a business and is using her personal car to deliver goods. The use of her car is an example of
A. financial capital. B. an explicit cost to the business. C. interest. D. an implicit cost to the business.
Use the figure below to answer the following question. 
Assume that price increases from $2 to $10. The price elasticity of supply (based on the midpoint formula) associated with this price change is about
A. 0.25 and supply is inelastic. B. 1 and supply is unit-elastic. C. 1.35 and supply is elastic. D. 4 and supply is elastic.