With respect to prices, at the macroeconomic level attention is focused on relative prices, while at the microeconomic level attention is focused on absolute prices
Indicate whether the statement is true or false
FALSE
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A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a negative externality. B) a patent. C) a protectionism clause. D) a positive externality.
The actual division of the burden of a tax is called
A) tax incidence. B) tax dispersion. C) tax credit. D) excess burden.
Which of the following is a direct implication of the view that childbearing is an economic decision?
(a) People will not have additional children unless they can earn a profit from doing so. (b) Social factors have no effect on childbearing decisions. (c) Compulsory education will increase fertility because educated children have the potential to earn higher salaries. (d) Fertility should fall with improved opportunities for women to work in jobs outside the home.
What does making decisions "at the margin" mean?
a. that people evaluate how easily a decision can be reversed if problems arise b. that people make those decisions that do not impose a marginal cost c. that people compare the marginal costs and marginal benefits of each decision d. that people always calculate the marginal dollar costs for each decision