In order to explain what appears to be price gouging behavior, an economist would focus on

When economists use the term institutions, they are referring to

Productive entrepreneurs increase wealth by

A local restaurant offers an all you can eat Sunday brunch for a $12 flat price. Susan eats four servings but leaves half of a fifth helping uneaten. Why?

Which description of market prices is most accurate?

Methodological individualism refers to

“If income were redistributed in favor of the poor, we would eliminate scarcity.” The preceding statement is

When price is used as the rationing criterion, individuals have a strong incentive to

The existence of transaction costs (compared to a situation where transaction costs are zero)

In Latavia, cultural pressures cause voluntary donations to orphanages to be very large, in Slobovia, people make relatively smaller donations. If the governments of both countries suddenly grant a tax break to those donating money to orphanages, the basic postulate of economics predicts that donations