The use of seat belts and other automobile safety features making bicycling more hazardous can be explained by the economic concept known as:
A. the real-nominal principle.
B. the marginal principle.
C. the principle of voluntary exchange.
D. the principle of diminishing returns.
Answer: B
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An automobile manufacturer is trying to make decisions about using more workers or more equipment. This belongs to the trade-off
A) Which goods and services to produce. B) How to produce. C) Who gets the goods and services. D) Who produces the goods and services.
Consider the market for university economics professors. Suppose the opportunity cost of going to graduate school to get a Ph.D. in economics increases for many individuals. Suppose it generally takes about five years to get a Ph.D. in economics. Holding all else constant, in five years the equilibrium wage for university economics professors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium wage.
The cash price at your local elevator is $3.60/bu for corn. The relevant (nearby) futures contract for corn is the December contract and it is valued today at $3.50/bu. The "basis" for this location (market) is:
a. $0.50/bu b. -$0.50/bu c. $0.10/bu d. -$0.10/bu
A higher interest rate
A. decreases the motivation to delay consumption and, therefore, save. B. increases the motivation to delay consumption and, therefore, borrow. C. decreases the motivation to delay consumption and, therefore, borrow. D. increases the motivation to delay consumption and, therefore, save.