The source of the water and diamond paradox results from a confusion about
a. luxuries and necessities
b. who uses what goods
c. the extraordinary role played by consumer surplus in the case of diamonds
d. which good lies on the indifference curve
e. the role that total and marginal utilities play in determining value
E
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Empiricism is analysis that uses ________ to test theories
A) data B) illustrations C) value judgments D) philosophy
Randomization is the assignment of subjects by ________ to a ________
A) chance, rather than by choice; treatment group or into a test group. B) choice, rather than by chance; treatment group or into a test group. C) choice, rather than by chance; treatment group or into a control group. D) chance, rather than by choice; treatment group or into a control group.
In an analytical sense, unions can be thought of as
A) setters of minimum wages. B) monopoly buyers of workers. C) generators of inflation. D) monopsonies.
Classical economists believe that
a. velocity varies directly with the money supply b. changes in the money supply affect real GDP c. the quantity of money explains prices d. the money supply affects velocity e. there are three motives involved in the demand for money