Historical episodes are
a. valuable to economists because they allow economists to see how the science of economics has evolved.
b. valuable to economists because they allow economists to evaluate economic theories.
c. not of concern to economists because economics is about predicting the future, not dwelling on the past.
d. not of concern to economists because the exact circumstances of historical episodes are unlikely to be observed again.
b
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Marginal cost is the ________ one more unit of a good and ________ of the good increases
A) opportunity cost of producing; increases as production B) opportunity cost of producing; decreases as production C) price that must be paid to consume; increases as consumption D) price that must be paid to consume; decreases as consumption
The typical Walmart Supercenter sells between ________ worth of goods per year.
A. $1 billion and $2 billion B. $100 million and $150 million C. $1 million and $2 million D. $200 million and $250 million
Jane is trying to decide which courses to take next semester. She has narrowed down her choice to two courses, Econ 1 and Econ 2. Now she is having trouble and cannot decide which of the two courses to take
It's not that she is indifferent between the two courses, she just cannot decide. An economist would say that this is an example of preferences that: A) are not transitive. B) are incomplete. C) violate the assumption that more is preferred to less. D) all of the above
The efficiency wage theory argues that:
a. employers will try to keep wages from falling when the economy is weak or the business is having trouble, and employees will not expect huge salary increases when the economy or the business is strong. b. the productivity of workers will increase if they are paid more, and so employers will often find it worthwhile to pay their employees somewhat more than market conditions might dictate. c. if an employer reduces wages for all workers during economic downturn, then the best workers more likely to leave, while the least attractive workers are more likely to stay. d. those already working for firms are "insiders," while new employees, at least for some time, are "outsiders.".