When a large number of people in society save more and it results in a decline in national income and an increase in unemployment this is known as
a. the fallacy of composition.
b. moral hazard.
c. the paradox of thrift.
d. marginal analysis.
c. the paradox of thrift.
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Education in the United States is heavily subsidized by the government. This fact suggest that
I. less than the efficient amount of education would be provided by an unregulated market. II. the marginal social benefit of education is greater than marginal social cost of education. A) I only B) II only C) both I and II D) neither I nor II
You are on a campus committee which sets the ticket prices for basketball games. The committee wants to increase the total money generated from ticket sales. When should the committee choose to lower its ticket prices?
a. Always. b. Never. c. When demand for basketball tickets is elastic. d. When demand for basketball tickets is inelastic.
Which of the following is true of long-run consumption functions?
a. Autonomous consumption is equal to zero in the long-run. b. The long run consumption functions are steeper than short run consumption functions. c. The marginal propensity to consume for the long run consumption function is almost equal to zero. d. The autonomous consumption is negative in long run consumption functions. e. The long run consumption function is represented by a straight line parallel to the horizontal axis.
Gino's Pizza shop hires workers in a competitive market to make pizza. The ingredients required to make each pizza cost $5. Daily output at Gino's Pizza varies with the number of workers hired, as shown in the table: Number of workersPizzas/day00116236354470584696 The marginal product of the 3rd worker is ________ pizzas per day.
A. 18 B. 14 C. 12 D. 16