For me to stop getting speeding tickets for a year, I gave five friends devices that measure my driving speed. If I drove over the speed limit by more than 5 miles per hour, I would have to pay them each $1,000. This would be an example of:
A. sunk costs.
B. a precommitment strategy.
C. opportunity costs.
D. a deductive decision.
Answer: B
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Assortative mating results in
A) many people being able to marry their way out of poverty. B) wealth becoming more concentrated among families. C) the Lorenz curve moving rightward closer to the line of equality. D) people marrying at a later age.
In economics, scarcity means that
a. there are not enough resources for everything that people want. b. we can never feed every person in the country. c. the price of goods has increased more rapidly than the general price level. d. there is not enough of a particular good for everyone to buy all they want at the prevailing price.
Property owned by everyone is generally referred to as
A) social property. B) free property. C) common property. D) natural property.