An economics professor points to a student in the front row and announces that "sitting in class is the thing you value most during this time period." Is the professor correct? Why or why not?
If the student is rational (and this is an assumption made in economics), he allocates time to its highest valued use. By attending class, the student has revealed that this activity was valued most during that time period. If this were not true, the student wouldn't be there.
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Deregulation has dramatically decreased airline safety.
Answer the following statement true (T) or false (F)
Refer to Figure 24-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
The government is able to alter the outcome of the three basic economic questions (what? how? and for whom?) by ______________, _________________, and ___________.
Fill in the blank(s) with the appropriate word(s).
A surplus will occur in a market if:
A. the quantity demanded at a given price is -less than the quantity supplied at that price. B. the quantity supplied at a given price exceeds the quantity demanded at that price. C. there are not enough sellers at the prevailing price. D. there are too many buyers at the prevailing price.