Which of the following is a feature of a good theory?
A) A good theory does not rely on data.
B) A good theory cannot be tested with data.
C) A good theory is free from approximations.
D) A good theory closely predicts actual behavior.
D
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If a good has the characteristic of nonrivalness, it means that
a. the good is publicly provided b. it is impossible to prevent others from sharing the benefits of consumption c. the benefits linked to consumption are indivisible d. none of the above
For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is
A) a horizontal line. B) downward sloping. C) nonexistent. D) upward sloping. E) the same as the demand curve each firm faces.
Arnie's Airlines decides to offer different fares to different customers for the same tri
A) wants to convert consumer surplus to deadweight loss. B) wants to help some buyers with lower fares. C) has different costs for the same flight. D) wants to convert consumer surplus to economic profit. E) wants to convert producer surplus to consumer surplus.
If individuals were fully rational, financing services such as social networks and search engines by selling data collected on consumers would be:
A. less of a problem than otherwise because consumers would not be inappropriately influenced by advertising. B. less of a problem than otherwise because consumers would not be inappropriately influenced by government. C. more of a problem than otherwise because consumers would not be inappropriately influenced by advertising. D. more of a problem than otherwise because consumers would not be inappropriately influenced by government.