If the marginal utility of each good consumers buy does not diminish but remains constant, we should witness consumers:
a. buying no goods at all.
b. spending all of their income on the good with the highest MU.
c. buying one of each good.
d. buying only the least expensive goods.
e. become indifferent to what goods they buy.
b
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Characteristics of the short run include: a. at least one fixed input
b. insufficient time for firms to enter or leave the industry in question. c. the applicability of the law of diminishing marginal product. d. all of the above.
The law of diminishing return does not apply to a firm in the long run because in this phase:
a. all the factors of production are fixed. b. there are no fixed factors of production. c. there are some fixed and some variable factors of production. d. the producer is required to produce a fixed level of output. e. the producer can change the level of output only by changing the variable factors, fixed factors remaining unchanged.
To some economists, the "Great moderation" means:
a. a small change in real wages. b. a low inflation rate. c. a low unemployment rate. d. low output growth variability. e. low money supply growth.
Which of the following is inconsistent with the burglary crime model presented in the textbook?
A) The burglary rate rises during recessions. B) The burglary rate declines during recessions. C) The burglary rate remains does not change because of a recession. D) The anguish cost of committing a burglary is directly related to the expected cost of committing a burglary. E) a and d