Marginal decision-making is best demonstrated by:
a. choosing to spend one more hour studying economics because the improvement in scores on the next quiz will be worth the sacrifice of time.
b. deciding to never purchase a coat made of animal skin or fur
c. acquiring the information relevant to a choice before making that choice.
d. measuring all of the costs of a meal against all of the benefits when deciding whether to order a second milkshake.
a
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According to the figure shown, if Sarah puts forth low effort, then Joe should:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. put forth high effort.
B. put forth low effort.
C. leave the market.
D. give an ultimatum.
Changes in expectations about future price levels:
A. affect only the short-run aggregate supply curve. B. affect only the long-run aggregate supply curve. C. affect both the long-run aggregate supply curve and the short-run aggregate supply curve. D. do not affect either the long-run aggregate supply or the short-run aggregate supply curve.
If velocity is a constant, then the equation of exchange is an economic model
a. True b. False Indicate whether the statement is true or false
During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
a. cyclical unemployment. b. the natural rate of unemployment. c. frictional unemployment. d. structural unemployment.