When people make choices that (at the time and with the information they have at their disposal) give them the greatest amount of satisfaction, they are said to be:
a. behaving irrationally.
b. applying econometric models to their everyday behavior.
c. living under a communist dictator.
d. acting in their own self-interest.
e. showing no willingness to plan for the future.
d
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A rise in the U.S. price level brings a ________ in the price of U.S. exports relative to imports that ________ exports of U.S. goods, bringing ________ in the quantity of U.S. real GDP demanded
A) fall; increases; an increase B) rise; decreases; a decrease C) fall; decreases; a decrease D) rise; increases; a decrease E) rise; increases; an increase
The pricing rule for a monopolist is:
A) P = MR > MC. B) P > MR > MC. C) P = MR = MC. D) P > MR = MC.
Supply-side economists
a. focus almost exclusively on the supply-side effects of changes in the money supply. b. did not devote much attention to the supply-side effects of changes in income tax rates since the marginal income tax rate is very low and pertained only to the relatively wealthy. c. argued that cuts in marginal tax rates had very favorable supply-side effects. d. argue that government spending is at least as important as tax rates.
Which of the following is a difference between taxing buyers and taxing sellers?
a. Taxing buyers results in a decrease in equilibrium quantity, whereas taxing sellers results in an increase in equilibrium quantity. b. Taxing buyers results in an increase in equilibrium quantity, whereas taxing sellers results in a decrease in equilibrium quantity. c. Taxing buyers results in a decrease in equilibrium price, whereas taxing sellers results in an increase in equilibrium price. d. Taxing buyers results in an increase in equilibrium price, whereas taxing sellers results in a decrease in equilibrium price.