After eating six chocolate candy bars in ten minutes, Mia says, "You would have to pay me to eat another chocolate candy bar!" This statement best illustrates
a. the law of demand.
b. the substitutability among goods.
c. the law of diminishing marginal utility.
d. that chocolate candy bars are an inferior good.
C
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When the economy reaches a trough in a business cycle, which of the following will occur?
A) Income, production, and employment will begin to rise. B) Income and production will rise, but employment will continue to fall. C) Employment rises, but income and production will continue to fall. D) Income, production, and employment will continue to fall.
A venture capital fund wants to invest $1000 in each of one thousand mad scientists
The first scientist applying to the fund is working on the legendary pill that turns water into gasoline, and the second scientist is working on the even more legendary perpetual motion machine. The smart venture capitalist here will A) back the pill and look for 999 other scientists working on the same pill. B) back the machine and look for 999 other scientists working on the same machine. C) look for 500 scientists working on the pill and 500 working on the machine. D) back the pill, the machine, and 998 other different projects.
Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 10b. C) 101/b. D) b.
The idea of rational ignorance implies that people are fully informed about their market purchases but uninformed about political issues
a. True b. False Indicate whether the statement is true or false