Michael is a college student. He can either buy a textbook for $100 or save up for a road trip he wants to take during the summer. This illustrates the principle that
a. trade can make everyone better off.
b. people face trade-offs.
c. rational people think at the margin.
d. people respond to incentives.
b
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Refer to the above figure. If the relevant aggregate demand curve was AD2, the government could do all of the following to close the existing gap EXCEPT
A) increase government spending on roads. B) reduce marginal tax rates. C) reduce corporate taxes. D) reduce defense spending.
A government policy maker is trying to decide which of four methods of reducing highway noise in a residential area should be implemented. She is looking at these four options:PlanBenefitsCostsA$500,000$490,000B$550,000$530,000C$570,000$540,000D$600,000$580,000If she uses the cost/benefit logic of economics, which plan will she propose?
A. Plan A B. Plan B C. Plan C D. Plan D
Which of the following demographic groups does not bear a disproportionate burden of poverty?
A. Households headed by women. B. Persons 65 or over. C. Hispanics. D. Children under 18.
A two firm oligopoly is known as a
A. cartel. B. monopoly. C. duopoly. D. contestable market.