If the Equilibrium Price of an Hour with a Tax

question 92

Multiple Choice

If the equilibrium price of an hour with a tax accountant is $65 and the market price is currently $55,then there is a

• A)surplus of accountants
• B)shortage of accountants
• C)equilibrium

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Definitions:

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.

Sunk-Cost Fallacy

A cognitive error where past investments of time, effort, or money are taken into account when making a decision, even though they cannot be recovered.

Loss Aversion

The tendency to strongly prefer to avoid losses compared to attempting to acquire gains.

Hindsight Bias

The inclination to see events as having been predictable, after they have already occurred.