The diamond-water paradox illustrates the idea that ________ determines what consumers are willing to pay for a particular good
A) total utility
B) the real-income effect
C) marginal utility
D) the substitution effect
Answer: C
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Use the following graph to answer the next question.
Which line represents the long-run aggregate supply curve?
A. 1 B. 2 C. 3 D. 4
Which of the following is consistent with a political and legal framework that discourages economic growth?
A. Taxation and regulation that are not very burdensome B. The allocation of bank credit by the government rather than by markets C. A speedy approval process for new businesses D. Agricultural prices that are allowed to vary according to market conditions
A disagreement involving two or more unions over which should have control over a particular firm or industry is
A) a closed shop. B) a union shop. C) a jurisdictional dispute. D) an industrial union.
Opportunity cost usually
a. cannot be measured b. applies to labor but not to capital c. is involved in calculating economic profit d. is greater than the cash payment made to a resource e. is less than the cash payment made to a resource