According to the ____ school of thought, it is in people's self-interest to acquire, process, and respond to information which affects their economic well-being and to not repeat previous errors in action.
A. supply-side
B. economic behaviorists
C. Keynesian
D. rational expectations
D. rational expectations
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Answer the following statement(s) true (T) or false (F)
1. The reported Air Quality Index (AQI)uses data from the EPA’s monitoring of metropolitan statistical areas. 2. The Air Quality Index (AQI) is formed from concentration data collected from a monitoring network that measures hazardous air pollutants. 3. Photochemical smog is caused by a chemical reaction involving criteria pollutants in the presence of sunlight. 4. Among all identified transportation sources, off highway vehicle emissions are the largest contributors to the formation of photochemical smog. 5. Title II of the Clean Air Act Amendments of 1990 strengthened regulations on motor vehicle emissions and fuels.
A Pigovian tax is intended to:
A. counter the effect of a negative externality. B. decrease efficiency in a market. C. decrease total surplus in a market. D. All of these statements are true.
The opportunity cost of an economic decision is:
a. the best alternative that was sacrificed. b. the amount of money needed to implement the decision. c. any land, labor, and capital that are wasted. d. all options that were lost due to scarcity.
In the figure above:
A. point A, where MR = AC, represents the point where the difference between total revenue and total cost is the largest. B. triangle ABC represents the welfare loss to the society because of the monopoly in the market. C. if the firm is producing an amount QC (point C), it is maximizing profit because MC = AC at that point. D. point B, where MR = MC, represents the point where the difference between total revenue and total cost is the largest.