In economics, we observe that people consistently make irrational decisions in certain situations and choose to do something even if:
A. the benefits outweigh the sunk costs.
B. the benefits outweigh the opportunity costs.
C. the opportunity costs outweigh the benefits.
D. the sunk costs outweigh the opportunity costs.
Answer: C
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Margaret Thatcher, the prime minister of Great Britain in the 1980s introduced a new system to replace local government taxes
The rates were replaced by the Community Charge or 'Poll Tax', which applied the same amount to every individual resident, with an 80% reduction for the unemployed. Inspite of the fact that this tax was unpopular and was eventually repealed can you think of any reason why it could be characterized as efficient? Can you think of any way that this tax could be evaded?
A negative demand shock decreases the price level in the short run
a. True b. False
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Of the labeled points, only ________ are efficient.
A. W, X, Y, Z, V, and T B. W, X, Y, Z, and V C. T and U D. X, Y, and Z
China exports more services than India
Indicate whether the statement is true or false