A decrease in the price of electricity can best be explained by
A. A growing economy.
B. Abnormally cold winters and hot summers.
C. The increased use of electronic devices such as computers.
D. A decrease in the population.
Answer: D
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With respect to the labor supply curve, the income effect
A) reinforces the substitution effect. B) lowers the opportunity cost of labor. C) raises the opportunity cost of labor. D) influences a person to work less as the wage rate increases.
Use the supply and demand model to explain why the salaries of nurses in increasing?
a. Demand has increased while supply also increased. b. Demand has increased while supply decreased. c. Demand has decreased while supply decreased. d. Demand has decreased while supply increased.
According to the rational choice model developed in the text, which statement below is false?
a. people would be less happy if they exchanged money rather than things at Christmas b. Individual preference patterns do not change because prices change c. consumers behave as if they did cost-benefit analysis on every purchase d. cash grants are always better than in-kind gifts e. none of the above
According to the capture hypothesis of regulation
A. regulation benefits the consumers over producers because the number of consumers is greater than the number of producers, giving the consumers more political clout. B. regulation eventually favors producers over consumers because the producers have more at stake than individual consumers. C. regulation favors producers over consumers because the producers were able to pay off the regulators. D. regulation benefits the regulators and the legislators who support the regulation by enabling them to obtain favors from both producers and consumers.