Econ chapter 1

"Incremental" means the same thing as

"marginal." If the marginal revenue exceeds the marginal cost, the USPS's profit will increase. If the marginal cost exceeds the marginal revenue, the USPS's profit will decrease.

Corporations and universities are willing to pay employees to take care of themselves because a healthier workforce

A and B only.

Despite this finding, many banks have been reluctant to install these barriers. Wouldn't banks have a strong incentive to install bandit barriers to deter robberies? Why. then, do so many banks not do so?

Banks have no economic incentive to install the barriers

If teachers put too little weight in the grading scale on a certain part of the course, like readings outside textbook, students might respond by ______ that part of the course

De-emphasizing

When an employer offers a wellness program to its employees, the health insurance premiums the employer pays on behalf of the employees are likely to

Decrease

Consider the following statement: "The problem with economics is that it assumes that consumers and firms always make the correct decisions. But we know that everyone makes mistakes." What is the most correct response to this statement?

Economics assumes that consumers and firms are rational, not that they always make the right decisions.

Why might studying economics be particularly good preparation for being the top manager of a corporation or a leader in government?

Economics teaches us how to look at the tradeoffs involved in every decision.

Why would the columnist argue that the act was more likely to hurt than help low-income families?

Firms that might otherwise have hired a low-waged worker may now be reluctant to do so because the firms could be liable for paying the tax

"Tax Bezos. a. What was the main provision of this act?

Firms whose employees recieved assistance feom government benefits, including Medicaid and the (SNAP), woukd be required to pay a tax to cost of the assistance

As a result of these changes in the federal student loan program, you would predict that the total amount students' borrowed under these programs would have

Increased because the terms if repayment have been made more generous

Teachers often wish that students came to class prepared having read the upcoming material. teacher could design the grading system to motivate students to come to class prepared by ______ the grade weight assigned to being prepared.

Increasing

The incentive of employees to improve or maintain their health once they obtain health insurance may ______impacted.

Negatively

Which of the following statements about the idea that people are rational is correct?

The idea assumes that consumers and firms use all available information as they act to achieve their goals.

c. If the columnist is correct, why did the sponsors of the act in Congress write the act the way that they did?

The sponsors of the legislation may have hoped that firms would raise the wages of low-income workers, which would make it unnecessary for these workers to apply for government benefits.

Which of the following best describes scarcity?

Unlimited wants exceed the limited resources available.

The grading system used by a teacher can affect the incentives of students to learn the course material by

altering the payoffs to achieving success on the various components of the course.

Scarcity is central to the study of economics because it implies that

every choice involves an opportunity cost.

President Obama was likely to have recommended changes that would

increase the payments that borrowers would have to make so that the government would be paid back sooner.

Economists assume that people are rational in the sense that

they use all available information as they take actions intended to achieve their goals.

President Obama and his advisers have failed to correctly forecast the effects of the 2011 changes to the loan programs because they

underestimated the number of students who would take advantage of the programs.