The assumption that people do NOT intentionally make decisions that would leave them worse off is known as
A) the rationality assumption.
B) the false assumption.
C) the ceteris paribus assumption.
D) the normative assumption.
Answer: A
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Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. B. There is an excess demand for parks in the neighborhood. C. There is an excess supply of parks in the neighborhood. D. The social benefit of cleaning the park exceeds the social cost of cleaning it.
If you purchased shares of common stock in 1990 for $1,000 and sold them for $2,000 in 2001 you would be liable for taxes on
a. $2,000. b. $1,000 less the rate of inflation. c. $1,000. d. $2,000 less the rate of inflation.
A shortage results when a
A. nonbinding price ceiling is removed from a market. B. binding price ceiling is imposed on a market. C. nonbinding price ceiling is imposed on a market. D. binding price ceiling is removed from a market.
Attaining higher and higher levels of air cleanliness causes
A) additional costs to rise to increasingly high levels. B) larger and larger increases in per capita incomes. C) additional costs to fall to lower and lower levels. D) larger and larger marginal benefits to society.