Do economists analyze people's thought processes or do they look at what people actually do?
A) Economists focus only on people's thought processes.
B) Economists focus on what people do, not their thought processes.
C) An economist's focus is about half-and-half between actions and thought processes.
D) Macroeconomists focus on thought processes while microeconomists focus on actions.
Ques. 2Opportunity cost
A) can only be measured as a paid cost.
B) is always the value of the next best forgone opportunity.
C) does not exist since there are no receipts.
D) is always the lowest valued alternative.
Ques. 3Refer to the above table. Suppose there are technological advances in the production of smartphones. The new equilibrium price will be
A) 275.
B) 375.
C) less than 275.
D) between 275 and 375.
Ques. 4Suppose that one firm produces a product that results in negative external costs to society. This information suggests that
A) resources are under-allocated to the firm.
B) the equilibrium market price of the product includes the external costs borne by society.
C) resources are over-allocated to the firm.
D) at the market price, quantity demanded is less than quantity supplied.
Ques. 5A flat tax on personal income, in which the same tax rate is applied to every dollar of income earned by each taxpayer, is an example of
A) a regressive tax.
B) a proportional tax.
C) a progressive tax.
D) a value-added tax.
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