The Latin phrase ceteris paribus means that when a relationship between two variables is being studied:
A. both are treated as unpredictable.
B. neither of those two variables is allowed to change.
C. all other variables are held fixed.
D. we recognize that some factors are unknown.
Answer: C
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Which of the following would cause a fall in the price of video tape rentals?
a. A new nationwide video rental chain opens. b. Movie theaters raise their prices. c. The royalties paid to movie actors increase. d. The price of video cassette recorders (VCRs) falls.
Use the following table to answer this question, which provides information on the production of a product that requires one variable input.InputTotal Product0015220332442550655758858956Marginal product is zero when the total product is
A. 58. B. 5. C. 0. D. 56.
The tragedy of the commons was avoided in the Middle Ages by
A) the government which imposed a tax for the use of the commons. B) the local police who monitored entry into the commons. C) social pressure to uphold traditionally accepted limits on family use of the commons. D) selling common grounds to individuals.
Macroeconomics might study which of the following?
A) the causes of domestic unemployment B) decision making undertaken by firms C) decision making undertaken by households D) determinants of the prices of rare goods (e.g., diamonds)