All of these are examples of unintended consequences EXCEPT Seat belt laws cause drivers to drive faster An increase in taxes leads to a decrease in your income Drug enforcement leads to more crime Telling your child to stop causes them to do it more.

Refer to Figure 21-3. Which of the graphs in the figure reflects a decrease in the price of good X only? graph a graph b graph c graph d

Very talented high-school athletes who skip college to become professional athletes   obviously do not understand the value of a college education usually do so because they cannot get into college understand that the opportunity cost of attending college is very high are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes

When governments incentivize people to do something, they need to be careful of  1. moral imperatives 2. unintended consequences 3. legal repercussions 4. sunk costs

The adage, “There is no such thing as a free lunch,” means   even people on welfare have to pay for food the cost of living is always increasing people face tradeoffs all costs are included in the price of a product

When the indifference curve is tangent to the budget constraint, a consumer cannot be made better off without an increase in her income or a price decrease in one of the goods she consumes the consumer is likely to be at a sub-optimal level of consumption income is at its optimum for a consumer indifference curves are likely to intersect

The copier paper industry has three firms. The market shares of each firm are: Best Copier Paper, 70%; Copier Paper Plus, 20%; and Paper Galore, 10%. What is the Herfindahl-Hirschman Index?   1. 54. 2. 540. 3. 5400. 4. 54,000.

Why is risk management difficult to measure? 

How does adding RMI or a second major benefit family units?

You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. In this example, you are the principal and the your employee is the agent agent and the your employee is the principal signaler and the your employee is the screener screener and the owner of the coffee ship is the signaler