Economic reasoning implies that economic agents will make decisions:
A) by random selection.
B) by comparing the costs and benefits of various options.
C) solely on the basis of tastes and preferences for various options.
D) by replicating the choices made by other economic agents.
B
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The "big tradeoff" refers to the tradeoff between
A) work and leisure. B) equity and efficiency. C) public goods and private goods. D) taxes and transfers.
According to the Hotelling Rule, the price of an exhaustible natural resource will
a) be very volatile b) rise at the rate of interest c) be too low and result in to being exploited too quickly d) rise to ensure that the resource never runs out. e) Always be at the backstop price where rival sources are economic
A movement along a demand curve is
A. a change in demand and is caused by a change in the price of the good. B. a change in the quantity demanded and can be caused by a change in consumers' income. C. a change in the quantity demanded and is caused by a change in the price of the good. D. a change in demand and can be caused by a change in consumers' income.
Which of the following is an example of a federal mandate?
A) the Medicaid program B) an excise tax C) the personal tax exemption D) the Food and Drug Administration (FDA)