Deck 1: Thinking Like an Economist

Question 1

As a new firm in the apple-picking business,you have considered adding an economist to your management team.With what would this economist be UNABLE to help your managerial team?

A) determining the lowest-cost way of picking apples
B) determining how many apples consumers will purchase at different prices
C) determining why people eat apples
D) determining the effect government regulations would have on the price of apples
E) determining the lowest-cost way of distributing apples

Answer 1

determining why people eat apples

Question 2

When consumers discard their gasoline-powered automobiles for electric-powered ones,this partially reflects the ________ of gasoline.

A) scarcity
B) luxury
C) necessity
D) specialization
E) incentive

Answer 2

scarcity

Question 3

Which of the following is a microeconomic question?

A) What are the total production levels in the economy?
B) How can we best encourage economic growth?
C) What is the overall price level in the economy?
D) What are the variables that determine the price of a specific good?
E) How can we reduce the unemployment rate among Hispanic men?

Answer 3

What are the variables that determine the price of a specific good?

Question 4

Because of scarcity:

A) individuals and societies are allowed no choice about which wants and needs to satisfy.
B) individuals and societies must choose which wants and needs to satisfy.
C) all choices about wants and using resources must be made by the government.
D) choices can be made about which wants to satisfy, but not about which resources to use.
E) choices must be made about which resources to use, but not about which wants to satisfy.

Question 5

When a parent tells you not to study economics because it is a pointless discipline,why is he or she INCORRECT?

A) The government continues to play a role in our daily lives.
B) People have the freedom to do whatever they want, and economists have nothing to add to their decision-making process.
C) There are not enough resources to produce all the goods and services that are wanted and needed.
D) Economics has nothing to offer in terms of understanding the stock market.
E) Economics has nothing to offer in terms of understanding government programs like Social Security.

Question 6

The basic goal of economics is:

A) controlling the effects of government actions.
B) determining how to distribute all that is produced in an economy.
C) addressing the scarcity problem created because the population's desire for goods exceeds the ability to produce them.
D) matching limited resources to people's limited wants and needs.
E) controlling tastes and wishes so that there will be enough resources to produce all the goods and services that people want.

Question 7

The need to study economics would cease to exist if:

A) the government stopped controlling people's actions.
B) people were free to make decisions on their own.
C) people put forth the effort required to attain the goods and services they wanted.
D) people earned more than they spent.
E) there were enough resources to produce all the goods and services people would like to obtain.

Question 8

What is the strongest argument for why we need more economists today than ever before?

A) We have a need for more wealth given the higher standard of living that individuals demand.
B) Economists are needed to address the allocation of scarce resources as a result of the world's growing population.
C) Economists are needed to make sure that firms continue to make profits.
D) Economists are needed to make sure that consumers are well informed about their possible purchase options and that they budget their finances appropriately.
E) Economists are needed to make sure that the government does not involve itself too much in the economy.

Question 9

Thomas Malthus's prediction of mass starvation failed to come true because of increases in:

A) population.
B) productivity.
C) temperature.
D) government involvement.
E) income.

Question 10

Macroeconomics is the study of:

A) the economic motives of voters and elected officials.
B) individual decision-making units such as households and businesses.
C) how government purchases affect specific markets.
D) the operation of the economy as a whole.
E) the interaction between the government and businesses.

Question 11

Which of the following statements best represents the fact that I cannot put in extra hours of work because of scarcity?

A) I do not have enough time for additional work because I need to spend time with my family and there are only so many hours in the day.
B) I do not like going to work, so why would I work more than I have to?
C) I do not think that overtime pay is high enough.
D) I am worried that if I work extra hours, I will get bored with my job.
E) I do not want my coworkers to feel pressure to work more because I am working additional hours.

Question 12

As a discipline,economics is best described by which of the following?

A) the study of how to control the effects of government actions
B) the study of how to control the preferences of consumers so that there will be enough resources to produce all the goods and services that consumers want
C) the study of how to use scarce resources to satisfy unlimited wants and needs
D) the study of how to dispose of excess goods and services that nobody wants
E) the study of how to maximize profits for firms

Question 13

Economics is the study of:

A) how to make money.
B) how to allocate resources to satisfy wants and needs.
C) capitalism.
D) how to make workers more productive and firms more profitable.
E) markets.

Question 14

In economics,choices are necessary because of the presence of:

A) luxuries.
B) inefficiency.
C) needs.
D) scarcity.
E) incentives.

Question 15

An economist is an individual who would be LEAST able to answer which research question?

A) how much of a product is purchased at a specific price
B) how the tastes and preferences of consumers are determined
C) what firms decide to produce
D) how goods and services are distributed to the population
E) how firms decide to produce a good or service

Question 16

Microeconomics is the branch of economics that focuses on the:

A) entire economy.
B) production side of the economy.
C) consumption side of the economy.
D) involvement of the government in the entire economy.
E) choices and decision-making of individuals and firms.

Question 17

Microeconomics is the study of:

A) how government activities affect the economy.
B) individual decision-making units.
C) collective decision-making.
D) the operation of the economy as a whole.
E) the interaction between the government and businesses.

Question 18

Which scenario describes studying for an economics course WITHOUT applying the scarcity principle?

A) I study two hours for every one hour I am in the classroom.
B) I study three afternoons a week until I understand the material or until dinner, whichever comes first.
C) I study with my roommate, who is also taking the course, and we discuss economic concepts during any free time we can find.
D) I study for this course and do nothing else.
E) I talk to an economist whenever I have a chance to do so.

Question 19

Which of the following is a macroeconomic question?

A) How many textbooks should be published by a publisher?
B) How much should English majors earn after college?
C) How do members of a household decide whether to clean their own house or hire someone else to do it?
D) What is the rate of unemployment?
E) What is the price of a new 40-inch television?

Question 20

The cost of a trade-off is known as the ________ cost of that decision.

A) marginal
B) net
C) opportunity
D) comparative
E) explicit

Question 21

What is the opportunity cost of taking this exam?

A) all of the things that you could have done by not studying
B) each of the questions that you miss on the exam
C) the highest-valued alternative that you gave up to prepare for and attend the exam
D) the money you spent purchasing the textbook and the other materials with which you study
E) the money you spent on tuition

Question 22

How are changes in opportunity cost related to decision-making behavior?

A) The lower the opportunity cost of doing an activity X, the more likely activity X will be done.
B) The higher the opportunity cost of doing activity X, the more likely activity X will be done.
C) Changes in the opportunity cost play no role in decision-making.
D) The lower the opportunity cost of doing activity Y, the more likely activity X will be done.
E) The higher the opportunity cost of doing activity Y, the less likely activity X will be done.

Question 23

The government has been trying to mint dollar coins instead of printing paper dollar bills,but people have been reluctant to use coins instead of paper bills.How would an economist explain this reluctance?

A) More people are using credit and debit cards, so people are not accustomed to using change.
B) Retailers find it too expensive to deal with coins and would have to raise their prices if consumers used coins more.
C) The opportunity cost of carrying around large quantities of coins is too large.
D) Prices have increased over time, and the opportunity cost of carrying around a large number of coins would be low.
E) People who receive a dollar coin are more likely to collect than spend the money, and the economy will not grow as quickly because less is being spent.

Question 24

An opportunity cost:

A) can be measured only when the decision involves expenditures of money.
B) can be measured only when the decision involves spending time on one thing and not on another.
C) is impossible to measure.
D) is equal to the value of what is given up to make a purchase or take an action.
E) exists for every decision made by individuals and businesses, but not by the government.

Question 25

Restaurants,bars,and convenience stores are often located near college campuses.These businesses frequently charge higher-than-normal prices.They are taking advantage of the fact that students:

A) are able to pay higher prices than the rest of the population, so the businesses can charge higher prices than they otherwise would have been able to charge.
B) are unable to pay higher prices than the rest of the population, but they are able to succeed because they can sell to a large number of people.
C) place a high value on their scarce time and are willing to pay higher prices than they would at locations farther from campus.
D) place a low value on their scarce time and are willing to pay higher prices than they would at locations farther from campus.
E) place a high value on their scarce time and are unwilling to pay higher prices, but because students are spending their parents' money, they buy from businesses closer to campus anyway.

Question 26

According to economists,one reason few professional athletes have PhD's is that the:

A) opportunity cost of going to graduate school is too high.
B) marginal benefit of going to graduate school is too high.
C) marginal cost of going to graduate school is too high.
D) comparative cost of going to graduate school is too high.
E) explicit cost of going to graduate school would be too high.

Question 27

An opportunity cost is the:

A) lowest possible cost.
B) highest possible cost.
C) monetary price paid for a good or service.
D) cost of a purchase or decision as measured by what is given up.
E) cost of finding the lowest price for a product.

Question 28

Why would economists find it surprising if the CEO of a large company does his or her own housework?

A) The opportunity cost of a CEO's time is quite high because he or she has an abundance of time to spend on housework.
B) The opportunity cost of a CEO's time is quite low because he or she has a scarcity of time to spend on housework.
C) The opportunity cost of a CEO's time is quite low because he or she has an abundance of time to spend on housework.
D) The opportunity cost of a CEO's time is quite high because he or she has a scarcity of time to spend on housework.
E) The opportunity cost of a CEO's time is equal to that of everyone else that works at the same company.

Question 29

The opportunity cost of a purchase is:

A) zero if the item is what you want most.
B) always equal to the selling price of what you purchased.
C) always greater for people who are out of work than for people who are working.
D) the alternative good or service that one sacrifices because a different good was purchased.
E) the lowest possible price.

Question 30

When you chose a major,you likely thought about your skills.Let's say you do not enjoy dealing with numbers.How could you explain to your parents,using logic from economics,why you chose to major in English instead of mathematics?

A) The opportunity cost of learning mathematics is too high.
B) The opportunity cost of learning to appreciate literature is too high.
C) The expected value of a major in English after graduation is low.
D) The expected value of a major in mathematics after graduation is high.
E) The opportunity cost of going to college is too low.

Question 31

The opportunity cost for Elijah of going to a water park is:

A) the price of the admission pass.
B) zero, if he can go with his parents who will pay.
C) zero, if it is raining that day and the water park is closed.
D) the price of the admission pass plus the highest-valued alternative activity Elijah could have done instead.
E) the highest-valued alternative activity Elijah could have done instead.

Question 32

The opportunity cost of going to school rather than working is the cost of:

A) food.
B) housing.
C) clothing.
D) health care.
E) potential wages.

Question 33

The government has been considering doing away with minting pennies because they are rarely used for purchases (with most people collecting them or throwing them away).How would an economist best explain this?

A) More people are using credit and debit cards, so they are not in the habit of using monetary change.
B) Prices have increased over time, and it would take far too many pennies to buy anything of value.
C) Prices have increased over time, and the opportunity cost of carrying around large quantities of pennies has become too large.
D) Prices have increased over time, and the opportunity cost of carrying around pennies has fallen.
E) People who use pennies probably are not spending enough money; removing the penny will force people to spend more.

Question 34

Opportunity cost is the ________ alternative forfeited when a choice is made.

A) least-valued
B) highest-valued
C) most recently considered
D) most convenient
E) first

Question 35

Economics is concerned with the trade-offs that emerge because of scarcity.The term "trade-offs" refers to:

A) the decision about whether households or businesses should bear the entire burden of the scarcity problem.
B) the buying and selling that occur as unwanted goods are exchanged for goods that are desired.
C) the alternatives given up when making choices.
D) recycling and transforming old goods into new goods to reduce scarcity problems.
E) forcing businesses to produce some goods and services and not others.

Question 36

I asked my neighbor to rake the leaves on his lawn because they were blowing into my yard.He responded that it would not be rational for him to do so.Why would this be the case?

A) My neighbor lacks the equipment to rake leaves and thinks it would take too long to do the job.
B) My neighbor is a busy person and does not have time to rake leaves.
C) My neighbor is getting revenge on me because I did not rake the leaves on my lawn last year.
D) My neighbor is a lawyer who values his time at $200 an hour and knows that he can hire a high school kid to rake leaves for $20 an hour.
E) My neighbor is a high school teacher and values his time at $15 an hour, and he knows that he can hire one of his students to rake leaves for $20 an hour.

Question 37

The opportunity cost of working rather than going to school is:

A) the cost of food and housing.
B) the cost of clothing and transportation.
C) zero because the person is earning an income by working.
D) the higher wages that come with additional education.
E) the annual wages earned by working.

Question 38

The trade-offs that are made because of scarcity:

A) are important in developing economies, but they do not apply to developed economies.
B) are important in developed economies, but they do not apply to developing economies.
C) are different when they involve the wants of people, but they are similar when they involve the needs of people.
D) can be accurately made to the extent that they can be quantified.
E) depend on the decision-maker's value judgments about the relative importance of the alternatives.

Question 39

Instead of taking an economics course,you could have taken a history course that meets at the exact same time.The total cost of taking the economics course would be the:

A) tuition cost for the economics course.
B) fact that you could not take the history course at the same time.
C) tuition cost for the economics course plus the price of the textbook and a notebook for the economics course.
D) tuition cost, the cost of the textbook and notebook, and the fact that you could not take the history course at the same time.
E) price of the textbook and a notebook for the economics course.

Question 40

A good is ________ even if it takes a small amount of time,energy,or money to acquire.

A) abundant
B) in shortage
C) cheap
D) scarce
E) virtually free

Question 41

Which of the following is the primary concept that economists use to explain how humans make decisions?

A) fairness
B) money
C) emotions
D) incentives
E) justice

Question 42

Economics professors are well aware of the importance of incentives.Which of the following situations shows the use of a positive incentive?

A) Students who show up late to class will not be allowed in the classroom.
B) Students who do not have a doctor's note will not be allowed to take an exam at a different time.
C) Students can choose whether they want to attend class-there is no attendance policy.
D) Students can choose to do extra credit at the end of the semester.
E) The professor decides to teach the class by reading out of the textbook to the entire class.

Question 43

Kelly is an architect,and she is trying to decide whether to hire Mike,a draftsman,to assist with her work.Kelly could hire Mike at $20 per hour,but it would take him three times as long to complete a task as it takes Kelly.Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle.Which of the following is true?

A) Kelly should not hire Mike because it would be faster for her to do the work herself.
B) Kelly should do the drafting work herself because she has the lower opportunity cost.
C) Kelly should hire Mike at the $20 per hour wage rate.
D) Kelly should hire Mike, but only if he is paid more than $30 per hour.
E) Kelly should hire someone who earns minimum wage instead of Mike.

Question 44

When most economists wake up in the morning,their first decision is whether to hit the snooze bar on the alarm clock.What statement best represents their thought process as rational decision-makers?

A) I had a really late night grading exams, and I deserve 10 more minutes of sleep.
B) The total amount of work I have to do today is rather small, so the total benefit to going to work for a full 8 hours is also small.
C) The total amount of work I have to do today is rather small, so the marginal cost of going to work 10 minutes late is small.
D) The total amount of work I have to do today is rather small, so the marginal benefit of sleeping 10 more minutes is rather large.
E) The marginal benefit of sleeping 10 more minutes is greater than the marginal benefit of 10 more minutes of work.

Question 45

In 2009,the federal government created a program called Cash for Clunkers whereby consumers could trade in a less efficient car for a more efficient car and receive a higher value than they would have otherwise.How would an economist understand the decision that consumers faced?

A) Consumers would compare the marginal benefits to the marginal costs of replacing their cars, and this program made sure that marginal benefits would exceed marginal costs.
B) Consumers would compare the marginal benefits to the marginal costs of replacing their cars, and this program made sure that marginal costs would exceed marginal benefits.
C) The Cash for Clunkers program increased the opportunity cost of replacing a car.
D) The Cash for Clunkers program served as a negative incentive to replacing a fuel-inefficient car.
E) The Cash for Clunkers program served as an indirect incentive to replacing a fuel-inefficient car.

Question 46

Actions and activities are discouraged with which type of incentive?

A) positive
B) negative
C) neutral
D) complementary
E) unintended

Question 47

Economists believe that individuals compare the benefits and costs of various options when making a decision and in so doing act:

A) fairly.
B) selfishly.
C) collectively.
D) unpredictably.
E) rationally.

Question 48

A parent that pays a child an allowance for doing chores is providing a(n)________ incentive.

A) positive
B) negative
C) neutral
D) complementary
E) unintended

Question 49

An example of a direct,negative incentive is:

A) providing a commission for sales.
B) awarding a promotion for hard work.
C) threatening to fire those who do not perform well.
D) providing an orientation for new employees.
E) providing generous benefits and pay for employees.

Question 50

One way to promote a new business is to offer free items.If you were to open a new restaurant and offer free food,you likely would have a line out the door.How would an economist understand the behavior of those standing in line?

A) Those waiting in line place a high value on the use of their time.
B) Those waiting in line believe that the marginal cost of waiting in line exceeds the marginal benefit of waiting in line.
C) Those waiting in line place a low value on the use of their time.
D) Those waiting in line believe that the marginal cost of waiting in line is zero.
E) Those waiting in line believe that the marginal benefit of waiting in line is zero.

Question 51

Public buildings in the United States are required to be accessible to the disabled and,as a result,almost all have an elevator.What would be an example of a positive,direct incentive for those who can use stairs?

A) Using the stairs will make it seem that you care about your health and that you are not lazy.
B) Using the stairs will increase the risk of tripping and falling.
C) Using the stairs will take more time than taking the elevator and will increase the risk of missing an important meeting.
D) Using the stairs will give you some exercise and make you healthier.
E) Using the stairs will put elevator repair professionals out of work.

Question 52

The term ________ means "additional."

A) "marginal"
B) "comparative"
C) "incentive"
D) "opportunity cost"
E) "trade-off"

Question 53

Actions and activities are encouraged with which type of incentive?

A) positive
B) negative
C) neutral
D) complementary
E) unintended

Question 54

An example of a direct,positive incentive is:

A) a prison sentence for committing a crime.
B) unemployment insurance for those who are laid off.
C) providing a workplace safety program.
D) providing a commission for sales.
E) threatening to fire those who do not perform well.

Question 55

If the government wanted to give people a negative,direct incentive not to save money,what would be the appropriate policy?

A) providing individuals a subsidy to save their money
B) providing funding for an advertising campaign encouraging people to spend more money
C) informing individuals that saving money causes people not to spend money, which will cause them to lose their jobs
D) imposing a tax on individuals for saving their money
E) informing consumers about all that they could buy with their money with the hope that they spend more

Question 56

A car insurance company is willing to offer accident-free drivers a discount.This is an example of:

A) a positive incentive.
B) a negative incentive.
C) an opportunity cost.
D) a comparative advantage.
E) scarcity.

Question 57

Which of the following is NOT a type of incentive?

A) positive
B) negative
C) complementary
D) indirect
E) direct

Question 58

You could quit high school and work full-time,but you decide to finish high school and get your high school degree.How would an economist explain your decision?

A) The cost of going to high school was greater than the benefit of working full-time.
B) The benefit of working full-time was greater than the benefit of going to high school.
C) The benefit of going to high school was greater than the benefit of working full-time.
D) The cost of working full-time was greater than the benefit of going to high school.
E) The benefit of working full-time was greater than the cost of going to high school.

Question 59

Rational decision-making under conditions of scarcity requires individuals to:

A) place a monetary value on everything.
B) know the prices of all goods they might buy.
C) be alert to price reductions on desired products.
D) understand that trade-offs are necessary.
E) earn as much income as possible.

Question 60

Many stores are open 24 hours a day.When store managers make the decision to stay open 24 hours,it must be the case that the:

A) marginal benefit of staying open all day and the marginal cost to remaining open all day are at least equal.
B) marginal benefit of staying open all day must always be greater than the marginal cost to remaining open all day.
C) marginal cost of staying open all day must always be greater than the marginal benefit to remaining open all day.
D) calculation of marginal benefits or marginal costs of remaining open all day play no role.
E) marginal benefit of remaining open all day is zero.

Question 61

The government places warnings on cigarette and liquor packages.These warnings serve as a(n):

A) positive incentive.
B) negative incentive.
C) indirect incentive.
D) opportunity cost.
E) way to make cigarettes and liquor more scarce.

Question 62

In the area of many college campuses,parking spaces are often scarce.If these parking spaces have parking meters,which population described below would pay for parking?

A) a population that is willing to take risks and believes that they will not be caught if they do not place change in the meter
B) a population that places a high opportunity cost on making sure they have change and placing change in the meter
C) a population that is willing to take risks, believes that they will not be caught if they do not place change in the meter, and disregards any possible $5 ticket for parking illegally
D) a population that is unwilling to take risks and believes there is a high chance that they will not be caught if they do not pay for parking
E) a population that is unwilling to take risks, believes there is a high chance that they will be caught if they do not pay their share, and places a high value on doing the "right" thing

Question 63

Many professors have a policy that punishes individuals if they do not come to class.Instead of punishing students who do not attend class,what could the professor do to provide a positive incentive to come to class?

A) Those who come to class are given extra points.
B) Those who do not come to class have their grades reduced.
C) Those who come to class will be asked questions, and if they answer them incorrectly, their grades will be lowered.
D) Those who come to class will be ridiculed.
E) Those who do not come to class might be dropped from the course.

Question 64

Comparative advantage emerges because of the presence of:

A) trade.
B) differing opportunity costs.
C) marginal benefits equaling marginal costs.
D) scarcity.
E) incentives.

Question 65

What is the indirect incentive in the unemployment insurance program?

A) Workers get paid when they are laid off.
B) Workers face an incentive to find a new job as quickly as possible.
C) Workers face no incentive to find a new job until the insurance runs out.
D) Workers are paid only a portion of their wages by the unemployment insurance program.
E) Workers on unemployment insurance are given training opportunities.

Question 66

While generous disability insurance can help those who have been permanently injured,it can also increase the likelihood that individuals will falsely claim to be disabled.This likelihood is a(n):

A) direct incentive.
B) indirect incentive.
C) positive incentive.
D) innovation.
E) marginal cost.

Question 67

Indirect incentives create ________ consequences.

A) positive
B) negative
C) indirect
D) direct
E) unintended

Question 68

The government has been trying to encourage the use of fuel-efficient cars.One way it has been doing this has been by allowing fuel-efficient cars to use a separate highway lane.This encourages people to use fuel-efficient cars because those who:

A) place a high value on their scarce time may be encouraged to buy a fuel-efficient car to take advantage of the speedier separate highway lane.
B) place a low value on their scarce time may be encouraged to buy a fuel-efficient car to take advantage of the speedier separate highway lane.
C) are more concerned about the environment are also those who happen to place a high value on their time.
D) purchase a fuel-efficient car are forced to pay more for a new car, and the use of the separate highway lane compensates them for this.
E) purchase a fuel-efficient car are likely to be unhappy because it is less powerful or more cramped inside; use of the separate highway lane compensates them for this.

Question 69

Some public transit systems use an "honor system" whereby patrons have to show that they have paid their fare only when asked for it by an enforcement officer.With what population would such a system be successful?

A) a population that is willing to take risks and believes that they will not be caught if they do not pay their fare
B) a population that places a high opportunity cost on taking time to purchase a ticket
C) a population that is willing to take risks, believes that they will not be caught if they do not pay their fare, and treats fines for not paying a fare as a nuisance
D) a population that is unwilling to take risks and believes there is a high chance that they will be caught if they do not pay their fare
E) a population that is unwilling to take risks, believes there is a high chance that they will not be caught if they do not pay their fare, and places a low value on doing the right thing

Question 70

A health insurance company may offer its policyholders a discount on their premiums if they prove that they have stopped smoking.What type of incentive is the health insurance company offering?

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 71

If you do not like changing the oil in your car and pay your father to do it for you,you have provided him with a(n)________ incentive.

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 72

Who benefits from voluntary trade?

A) buyers
B) sellers
C) the government
D) buyers and sellers
E) buyers and the government

Question 73

A camera takes a picture of drivers who do not stop at a red light,and this practice is used to issue a traffic ticket.These red light cameras can be understood as serving a(n):

A) positive incentive to encourage individuals to stop at a red light.
B) negative incentive to discourage individuals from driving through a red light.
C) indirect incentive to encourage individuals to stop at a red light.
D) direct incentive to encourage individuals to stop at a red light.
E) negative incentive to encourage individuals to drive through a red light.

Question 74

Google has started a project to scan all books and make those that are not copyrighted available to people free of charge.Why is it important that only books without a copyright are available?

A) If all books were scanned and available free of charge, copyright holders would face a positive incentive to continue writing and publishing books.
B) If all books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.
C) If only copyrighted texts were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.
D) If only non-copyrighted books were scanned and available free of charge, copyright holders would face a negative incentive to continue writing and publishing books.
E) If only non-copyrighted books were scanned and available free of charge, copyright holders would face an indirect incentive to continue writing and publishing books.

Question 75

The U.S.federal government offers homeowners a tax deduction for their home loan interest payments.This reduction in taxes may have encouraged too many people to own a home.If the tax deduction caused people to buy who otherwise could not have afforded to own,the tax deduction serves as a(n)________ incentive.

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 76

In a growing number of cities,stores are required either not to make available plastic or paper bags or to do so only for an additional fee.If this fee can be refunded when you recycle the bag,the refund acts as a(n)________ incentive.

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 77

In a growing number of cities,stores are required either not to make available plastic or paper bags or to do so only for an additional fee.What kind of incentive is this fee?

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 78

The government controls for many indirect incentives in safety net social programs by:

A) limiting payment to a specified time period.
B) providing only a partial payment.
C) allowing individuals to apply to only a certain number of safety net social programs.
D) requiring individuals to repay the benefits they received.
E) establishing income limits for those who apply for safety net social programs.

Question 79

The U.S.federal government offers homeowners a tax deduction for their home loan interest payments.This reduction in taxes serves as a(n)________ incentive to buy a house.

A) direct
B) indirect
C) neutral
D) complementary
E) unintended

Question 80

When a ticket is given to a pedestrian for jaywalking,what type of incentive exists?

A) positive
B) negative
C) neutral
D) complementary
E) unintended