When studying human behavior, economists assume rational self-interest. This means that people
A. always make the right decisions.
B. make decisions based on some desired outcome.
C. are quite selfish and are not concerned about others.
D. have all the information they need to make a decision.
Answer: B
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Ms. Rockefeller has an income of $200 million. If her income is in the form of wages and salary, then most of her income is taxed at __________ percent.
A. 15 B. 27 C. 30 D. 35
Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The efficient output level is ________ and the efficient price is ________.
A. 6 units of food; $24 B. 0 units of food; $0 C. 10 units of food; $20 D. 4.29 units of food; $25.71
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Suppose Bright Orange is large firm that grows and harvests oranges. Each orange yields 2 ounces of orange juice and exactly one orange peel. Bright Orange sells the orange juice to juice distributors and the orange peels to fragrance companies. If the market for oranges is perfectly competitive, Bright Orange will determine its profit-maximizing output level based on ________.
A) the market price of an orange B) the market price of an ounce of orange juice C) the market price of two ounces of orange juice D) the market price of an orange peel