Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they include the sunk cost of their meals in making their decision.
B. they gain negative utility from insulting the chef.
C. they overvalue the opportunity costs of their health and time involved with eating food they don't really want.
D. they undervalue the true benefit of eating too much.
Answer: A
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A) government failure. B) government as usual. C) lack of government trust. D) politics.
If an indifference map for a consumer is made up of straight, negatively sloped lines, the marginal rate of substitution ________ as more of the good on the horizontal axis is consumed
A) does not diminish B) diminishes C) increases D) More information is needed to answer the question.
If Healthy Bars agrees to sell its snack bars to a large grocery chain on the contractual condition that the grocery chain does not sell any of Healthy Bars' competitors' snack bars, this is an example of ________.
A) a horizontal contract B) a tying arrangement C) a requirements contract D) an exclusive dealing contract
Which agency was created by Congress in 1914 to investigate and regulate unfair methods of competition?
a. the Department of Justice b. the Federal Trade Commission c. the Interstate Commerce Commission d. the General Accounting Office e. the Council on Competitiveness