Observations of real-world situations that appear to violate a consumer optimum could be offered as evidence favoring
A. diminishing marginal utility.
B. bounded rationality.
C. zero marginal utility at a utility-maximizing point.
D. utility analysis.
Answer: B
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When an economist considers welfare evaluations, he is looking at
A) whether a policy increases social welfare. B) the ability of an economy to take care of the unemployed. C) price inertia. D) new open economy macroeconomics.
A foreign exchange intervention that lowers the exchange rate will also ________
A) increase the real interest rate B) decrease the money supply C) increase investment D) decrease international reserves
The rate of homeschooling is higher _____
a. when the mother is uneducated b. where regulations on homeschooling are onerous c. in affluent and homogenous areas d. in areas where school quality is low relative to homeschooling
The adverse effects of rent controls include
A) keeping rental rates too high in a normal market. B) excessive construction of new rental housing. C) reduced incentive to construct new rental housing. D) increased incentives for people to purchase their own homes.