Suppose studies showed that only 15 percent of all teens wear their bike helmets while riding their bikes. If policymakers wish to have more teens wear their bike helmets, they should:
A. not inform teens of the social norm.
B. Informing them of the social norm will have no impact on their individual situation.
C. inform teens of the social norm.
D. The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.
Answer: A
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Steve sells hotdogs from a vending cart downtown. The table above shows his daily total revenues at four different prices. Between which two prices is the demand for hotdogs
a. elastic? b. unit elastic? c. inelastic?
If the Fed sets a target exchange rate that is higher than the current exchange rate, then
A) the Fed must sell dollars. B) the Fed must buy dollars. C) the Fed can do nothing in the short run. D) will try to print more dollars for foreign distribution.
The population of individuals at least 16 years of age can be broken into 3 groups. They are
A) the unemployed, discouraged workers, and retirees. B) those employed full-time, those employed only part-time, and the unemployed. C) those working in the for-profit sector, those working in the nonprofit sector, and individuals who are unemployed. D) none of the above.
Which of the following best explains the increase in national income that results from equal increases in government spending and taxes?
A) Consumers do not reduce their spending by full amount of the tax increase B) The government purchases some goods that consumers would have purchased on their own anyway C) Consumers believe all tax cuts are transitory D) The increase in government spending causes a decrease in investment E) Consumers are aware of tax increases but not of increase in government spending