Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. What should the county do? Install the guard rail because safety is priceless Install the guard rail because the benefits exceed the costs Do not install the guard rail because the costs exceed the benefits Do not install the guard rail at any cost because drivers can purchase private insurance for their vehicles

The philosopher John Rawls argued that   people would choose income inequality to allow the maximum use of their individual talents government has a role to ensure income equality to prevent social unrest people would choose equal opportunity because it is morally right people would choose a more equal distribution of income if they had to determine an economic distribution system before knowing their place in it

The example of organ donations was used to the explain 1. the endowment effect 2. the paradox of choice 3. choice architecture 4. the power of default options

Which of the following does not explain the rise in income inequality in the United States?   An increase in minimum wages An increase in the share that goes to those at the very top in an industry. Increased international trade with low-wage countries Changes in technology

Income Tax rate $0 to $40,000 25% $40,000 to $100,000 40% Over $100,000 60%   What is the effective tax rate if you earned $200,000? 47% 52% 58%    60%  

The forces that make market economies work are work and play politics and policies supply and demand taxes and government intervention

What is not a factor that can cause a  shift in the SUPPLY of a good? Subsidies Technology Price of Related goods Resource Costs

Which of the following can lead to failure of the free market? externalities and market power externalities but not market power market power but not externalities neither externalities nor market power

An agreement among firms regarding price and/or production levels is called   a free-trade arrangement collusion a Nash agreement an antitrust market

In less than two years in the early 1920s, the cost of a German newspaper rose from 30 marks to 70,000,000 marks. This is a spectacular example of market power caused by a change in the country’s standard of living market power caused by a single firm controlling the newspaper production inflation caused by increased productivity in the economy inflation caused by an increase in the quantity of money in the economy