A temporary decrease in the price of oil would be considered a:
A. long-run supply shock.
B. demand shock.
C. short-run supply shock.
D. The changing price of oil would not affect any of these.
Answer: C
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Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming
A) the two previous hamburgers. B) all three hamburgers. C) just the third hamburger. D) just the second hamburger. E) the third hamburger minus the pleasure from consuming zero hamburgers.
Define the three key principles of economics
What will be an ideal response?
A professor will sometimes pay higher prices for some goods compared to an undergraduate student because
a. They value the item more than the student b. They like wasting money c. crowded and understaffed discount stores impose higher time costs d. they like to show off
The equilibrium hedonic wage function is most likely
A. a single point, as all firms will choose the same level of risk, and consequently all workers will be paid the same wage. B. downward sloping as firms that offer riskier jobs are usually able to pay lower wages. C. horizontal as no firm will overpay for workers. D. upward sloping as firms that offer riskier jobs usually pay higher wages. E. horizontal as firms will choose their optimal level of safety.