- 3.1: A rational decision benefi ts the decision maker asmuch as possible...
- 3.2: Thinking like an economist would lead you tobelieve that for a gift...
- 3.3: A student operating on her budget line for shoesand shirts a. would...
- 3.4: Which of the following would be considered a sunkcost? a. money you...
- 3.5: The net benefi t of a choice is a. the benefi t of the choice plus ...
- 3.6: The decision- making rule for making a rationalchoice is best descr...
- 3.7: The table below lists the benefi t and cost of fourdifferent vacati...
- 3.8: Which of the following accurately describes theconcept of marginal ...
- 3.9: All of the following are mistakes to avoid in makingrational decisi...
- 3.10: The branch of economics called behavioraleconomics combines economi...
Solutions for Chapter 3: Making Economic Decisions
Full solutions for Explorations in Economics | 1st Edition
fluctuations in economic activity, such as employment and production
the offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age, or other personal characteristics
the uncompensated impact of one person’s actions on the wellbeing of a bystander
a curve that shows consumption bundles that give the consumer the same level of satisfaction
labor-force participation rate
the percentage of the adult population that is in the labor force
the regular pattern of income variation over a person’s life
a tax that is the same amount for every person
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services
isk that affects all companies in the stock market
medium of exchange
an item that buyers give to sellers when they want to purchase goods and services
model of aggregate demand and aggregate supply
the model that most economists use to explain shortrun fluctuations in economic activity around its long-run trend
the proposition that changes in the money supply do not affect real variables
the amount of money today that would be needed, using prevailing interest rates, to produce a given future amount of money
a legal minimum on the price at which a good can be sold
the ability of an individual to own and exercise control over scarce resources
the path of a variable whose changes are impossible to predict
a situation in which quantity supplied is greater than quantity demanded
tax on goods produced abroad and sold domestically
government programs that supplement the incomes of the needy