Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, another factor that was responsible for solar power deployment was the rising price of electricity. The increase in sales due to higher electricity prices describes the economic concept of:
A. using assumptions to simplify.
B. ceteris paribus.
C. rational self interest.
D. marginal thinking.
Answer: C
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.
A. top; bottom B. bottom; top C. bottom; bottom D. top; top
List three ways government can reduce depletion of an endangered resource. Which of these ways requires the least amount of management, monitoring, and bureaucracy?
What will be an ideal response?
If a tax is progressive, the average tax rate
A. remains the same as income rises. B. rises as income rises. C. falls as income rises. D. falls with passage of time.
Mr. Smith is consuming beer and wine. At his current level of consumption, the marginal utility per dollar is 30 units for beer and 20 units for wine. Mr. Smith should
A) consume twice as much beer as wine. B) consume twice as much wine as beer. C) increase his consumption of beer relative to wine. D) increase his consumption of wine relative to beer.