To a seller, the cost of a good or service is ________, and the price is ________
A) what must be given up to produce the good or service; what is received for the good or service
B) what is received for the good or service; what must be given up to produce the good or service
C) the producer surplus the seller receives; the consumer surplus the buyer receives
D) the producer surplus the buyer receives; the consumer surplus the seller receives
E) None of the above answers is correct.
A
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Suppose that some teachers have decided that economic and financial uncertainty have made the prospect of retiring more risky, and therefore carry a higher cost than not retiring
By using all available information as they act to achieve their goals, these teachers are exemplifying the economic idea that A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets
Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets? A) Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets. B) The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay. C) Choices made through government policies are more important than decisions individuals make through markets. D) Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.