Behavioral mechanism design economists face which of the following problems when solving policy issues?
A. How to find the right combination of social and moral incentives but without considering prices
B. How much mathematics to include in the model, an issue only behavioral economists face
C. How to convince people that their approach to policy issues will work, an issue only behavioral economists face
D. How to find the right combination of market, social, and moral incentives that will achieve a goal
Answer: D
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Entrepreneurs do all of the following EXCEPT
A) organize labor, land, and capital. B) come up with new ideas about what and how to produce. C) bear risk from business decisions. D) own all the other resources used in the production process.
With respect to income redistribution programs, what is meant by "The Big Tradeoff," and what causes it?
What will be an ideal response?
If the percentage change in quantity supplied is 0%, and the percentage change in price is 10%, then the supply for the good is
A. unit elastic. B. perfectly inelastic. C. inelastic. D. elastic.
A surplus occurs whenever
A) price is below the equilibrium price. B) price is above the equilibrium price. C) price is equal to the equilibrium price. D) the supply curve is downward sloping.