Central planners
A) know more than the market.
B) know less than the market knows.
C) process information more efficiently than the market.
D) can predetermine equilibrium prices.
B
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What tools can unions use to increase the demand for union labor?
What will be an ideal response?
Refer to Figure 3-2. A decrease in the price of substitutes in production would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Paul wins a $500 watch in a sweepstakes and decides to keep it, even though he says he would have preferred to win $500 cash. Knowing Paul's preferences, how can we explain his decision to keep it?
A. Paul has a cognitive bias, and it leads him to value the watch more because he owns it. B. Paul has a cognitive bias; he is ignoring a nonmonetary opportunity cost of already owning the watch. C. Paul's implicit cost of ownership makes him feel as though he should keep the watch. D. All of these are true.
The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 What is the marginal cost of the 5th car wash each month?
A. $15 B. $12 C. $14 D. $4