Charitable donations to the Red Cross
A. cannot be explained by the rational self-interest theory.
B. can be explained by the rational self-interest theory.
C. prove that there is no scarcity in the United States.
D. can be explained by the rational ignorance theory.
Answer: B
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Refer to Table 9-9
a. Which country has an absolute advantage in the production of both light bulbs and flash drives? b. Which country has a comparative advantage in the production of light bulbs? c. Which country has a comparative advantage in the production of flash drives? Table 9-10 Pens Pencils Tran 40 160 Farah 50 150 Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
A financing gap is:
A. the difference between the savings rate within an economy and the amount of investment needed to achieve sustainable growth. B. the extra savings a country has beyond that needed to achieve sustainable growth. C. the difference in the amount of investment dollars coming in to a country and the amount of investment dollars going out of a country. D. the extra investment developing countries need in foreign aid to sustain their current rate of growth.
When Bob's willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:
A. Bob will get the same surplus whether he purchases the coffee or not. B. Bob is indifferent about purchasing the coffee. C. Bob will get no surplus by purchasing the coffee. D. All of these are true.
The income approach to measuring GDP:
A. uses the factors payments made by businesses to households to estimate GDP. B. ignores how income is earned and focuses instead on how it is used. C. adds up all household expenditures to calculate aggregate income and GDP. D. focuses on how income is spent.