Choosing to study for an exam until the extra benefit (e.g., improved score) equals the extra cost (e.g., the value of foregone activities) is:
A. an application of the Scarcity Principle.
B. not an economic choice.
C. not rational because it ignores the importance of total benefits and total costs.
D. an application of the Cost-Benefit Principle.
Answer: D
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The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was
A) the high levels of unemployment that occurred during the Great Depression. B) the presence of both high unemployment and high inflation during the 1970s. C) theoretical proof that Keynes's ideas were invalid. D) evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.
The laissez-faire free-market system is
a. an ideal of perfection. b. one that leaves no room for improvement. c. unmatched by any other system for allocative efficiency. d. All of the above are correct.
During 1960-1980, those with the highest incomes confronted federal marginal tax rates between 70 and 90 percent. Since 1986, the highest federal income tax rate has been less than 40 percent. Since 1986, the share of the personal income tax collected from the top one-half of one percent of earners has been
What will be an ideal response?
One of the mechanisms to replace poor management is to
A. pay more to the senior management. B. fire the union leaders who create an environment of mistrust. C. fire the low-level workers who are inefficient. D. tender offers and mergers.