Many people favor stronger gun control as a method of reducing murder rates. Others argue that criminals will get guns despite stronger laws restricting them. Assume those seeking gun control recognize this argument but they still push for gun control. They most likely believe that
A. criminals fall prey to the Weber-Fechner law.
B. people are rational but are subject to the self control pitfall in moments of high passion.
C. murders are usually premeditated rational acts based on cost-benefit analysis.
D. the sophomore jinx does not apply to murderers.
Answer: B
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Bundling
A) is when firms sell multiple separate goods together for a single price. B) is where a firm wraps its fragile goods in special packaging and charges a higher price than if the goods are put into regular packaging. C) increases transaction costs for consumers. D) is illegal in most U.S. states.
The change in cost resulting from producing one additional unit of output is
a. average total cost b. total variable cost c. average variable cost d. marginal cost e. total cost
The Big Mac Index perfectly explains the relative size of economies.
a. true b. false
If households expect prices of consumer goods to decline, this will:
A. increase the quantity of real domestic output demanded. B. decrease aggregate demand. C. decrease the quantity of real domestic output demanded. D. increase aggregate demand.