If the punishment is ________, or the likelihood of getting caught is ________, the cost associated with breaking a ban may not be high enough to change the trade-off that consumers face.
A. not severe; high
B. not severe; low
C. severe; high
D. severe; low
Answer: B
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The theory of expected utility theory
A) predicts all actions involving uncertainty. B) predicts no actions involving uncertainty. C) predicts some, but not all, actions involving uncertainty. D) predicts only one in three actions involving uncertainty.
Adam Smith's book The Wealth of Nations was published at the time of the:
a. Great Depression. b. U.S. Declaration of Independence. c. U.S. Civil War. d. War of 1812.
As the time a person has to adjust to a price change increases, the elasticity of demand will ______.
a. decrease b. increase c. remain constant d. fluctuate
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.