Governments may choose to intervene in a market in an attempt to:
A. encourage the consumption of certain goods.
B. discourage the consumption of certain goods.
C. redistribute surplus.
D. All of these are true.
D. All of these are true.
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The hypothesis that people are nearly, but not fully rational, cannot possibly fully examine every available choice, and utilize simple rules of thumb in making decisions is known as the
A) irrationality hypothesis. B) ceteris paribus hypothesis. C) individual aggregation hypothesis. D) bounded rationality hypothesis.
If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $5, the marginal factor cost for labor is
A) greater than $5. B) less than $5. C) $5. D) indeterminate.
If people become less optimistic about the future earnings of Hyde Park Jazz Studio, then the price of the company's stock will fall
a. True b. False Indicate whether the statement is true or false
The demand for good X will be more elastic than the demand for good Y when
A. good X accounts for a larger percentage of a typical consumer's budget than good Y. B. consumers have more time to adjust to a change in the price of good X than they have time to adjust to a change in the price of good Y. C. good X has fewer substitutes than good Y. D. both b and c E. all of the above