Procrastination, addiction, and honesty
a. may be explained by preferences that are not transitive
b. violate the economist's assumption that "more is better"
c. help to explain why the substitution effect is more powerful than the income effect
d. are often inconsistent with narrowly defined rationality
e. are inferior economic "goods".
D
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Which of the following statements regarding human capital is INCORRECT?
A) Human capital is the accumulated skill and knowledge of human beings. B) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. C) The accumulation of human capital is the source of both increased productivity and technological advance. D) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress.
When purchases of tennis socks decline following an increase in the price of tennis sneakers (other things remaining equal), the relationship between these two items can be described as
A) substitutable. B) complementary. C) unique. D) ordinary.
If we consider the reality that each worker has different skills, then the production possibilities frontier
A. would display a constant opportunity cost of a good as more of that good is produced. B. would display a decreasing opportunity cost of a good as more of that good is produced. C. would display an increasing opportunity cost of a good as more of that good is produced. D. cannot be drawn, as too many variables would need to be taken into consideration.
M1 refers to:
A. the most narrowly defined money supply definition. B. currency held by the public minus checking account balances. C. the largest of the money-supply definitions. D. M2 plus near monies.