Which of the following is not a policy implication of the traditional model?
A. There is a potential role for government if there are positive externalities.
B. For the most part, the government needs to stay out of people's way and let them trade.
C. There is a potential role for government if there are negative externalities.
D. The government should take moral and social incentives into account when considering intervention.
Answer: D
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In a study conducted by Marianne Bertrand and Sendhil Mullianthan, identical resumes were sent in response to help wanted ads in newspapers, with half of the resumes assigned an African-American-sounding name and half assigned a white-sounding name
The study found that A) employers were 50 percent more likely to interview workers with African-American-sounding names. B) employers were equally likely to interview workers with white-sounding names and with African-American-sounding names. C) employers were 50 percent more likely to interview workers with white-sounding names. D) no employers chose to interview workers with African-American-sounding names.
If the price of gasoline increases from $2.50 per gallon to $3
00 per gallon and the quantity demanded goes down from 120 million gallons per week to 115 million gallons per week, the absolute value of price elasticity of demand in that price range is approximately A) 0.23. B) 4.35. C) 0.93. D) 2.34.
If Greg uses a special glue to make model planes that he sells and the price of his model planes increases, then one would expect that the equilibrium price of the special glue would _______ and the equilibrium quantity would _________
a. increase; decrease b. decrease; increase c. increase; increase d. decrease; decrease e. increase; indeterminant
Unless people can benefit from conservation, there is a temptation to:
A. delay resource extraction as long as possible. B. extract and use resources at a constant rate. C. extract and use resources as quickly as possible. D. ban the extraction of nonrenewable resources.