The gambler's fallacy suggests that what happened in the past will influence the present. This is most likely true in which of the following situations?
A) flipping cards from a single deck
B) tossing a fair coin
C) the quality of play of a baseball team
D) horse racing
B
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Isoquant lines represent ________ whereas isocost lines represent ________
A) technical efficiency; economic efficiency B) economic efficiency; technical efficiency C) economic efficiency; marginal costs D) input tradeoffs; economic tradeoffs
What impact does the Fed's raising the interest rate have on the money supply and on the price level?
A. An increase in interest rates raises the money supply and eventually reduces prices. B. An increase in interest rates reduces the money demand which will slow the growth in prices. C. An increase in interest rates lowers the money supply and raises the money demand, which will neutralize price increases. D. An increase in interest rates will increase investment spending and GDP, which will lower prices.
Using the concentration ratio to measure the degree of competition
A. may overstate the degree of competition because it ignores imported goods. B. may overstate the degree of competition because inter-industry competition is ignored. C. may understate the degree of competition because it ignores imported goods. D. may understate the degree of competition because market share changes annually.
According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana." On the basis of this information, how would you describe alcohol and
marijuana? A) The two goods are substitutes in consumption. B) There is no relationship between the two goods. C) The two goods are complements in consumption. D) They are both luxury goods.