- 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
average tax rate
total taxes paid divided by total income
the ability to produce a good at a lower opportunity cost than another producer
a study that compares the costs and benefits to society of providing a public good
the deviation of unemployment from its natural rate
the property of society getting the most it can from its scarce resources
the property of distributing economic prosperity uniformly among the members of society
a person who receives the benefit of a good but avoids paying for it
a curve that shows consumption bundles that give the consumer the same level of satisfaction
an increase in the overall level of prices in the economy
law of supply
the claim that, other things being equal, the quantity supplied of a good rises when the price of the good rises
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
a legal minimum on the price at which a good can be sold
deposits that banks have received but have not loaned out
the resources wasted when inflation encourages people to reduce their money holdings
a period of falling output and rising prices
the organized withdrawal of labor from a firm by a union
a situation in which quantity supplied is greater than quantity demanded
an excess of imports over exports
a measure of happiness or satisfaction