If a college enforces a new policy where anyone caught cheating is immediately expelled, the basic postulate of economics suggests that
A) the amount of cheating will be unaffected.
B) any of the above is possible because student behavior is unpredictable.
C) fewer students will attempt to cheat.
D) cheating will be completely eliminated.
C) fewer students will attempt to cheat.
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See table below. Does production exhibit increasing costs? Which ring and machine combination will achieve the highest growth in the production of mood rings? Saturn Rings Machines 30 0 20 5 10 8 0 10
What will be an ideal response?
The magnitude of the tax multiplier is smaller than the magnitude of the government expenditure multiplier because
A) a change in taxes does not change expenditures. B) an increase in taxes decreases expenditures. C) a decrease in government expenditure decreases tax revenue. D) a change in taxes does not change expenditures by as much as the same size change in government expenditure. E) a change in taxes creates additional induced taxes.
Archie wants to buy a steak for dinner. When he goes by the store, he sees that the price of steak has gone up a lot since the previous week. He decides to buy hot dogs instead. The __________ means that even though Archie has the same amount of money he did last week, that money won’t buy the same amount of steak today.
a. income effect b. substitution effect c. inflationary effect d. deflationary effect
When a lender underestimates the rate of inflation,
a. purchasing power is redistributed to the lender. b. purchasing power is redistributed to the borrower. c. the real rate of interest will be higher than expected. d. the nominal interest rate was set too low.