Draw a graph showing the effect of an increase in the saving rate on the production function.
What will be an ideal response?
An increase in the saving rate causes the production function to shift upwards.
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If a increase in income decreases the demand for a good, then the good is a(n)
a. substitute good. b. complementary good. c. normal good. d. inferior good.
How do the marginal costs of pollution reduction and the marginal costs of pollution damage change as pollution levels increase?
a. The marginal costs of pollution reduction remain constant and the marginal costs of pollution increase b. The marginal costs of pollution reduction increase and the marginal costs of pollution damage increase c. The marginal costs of pollution reduction increase and the marginal costs of pollution damage decrease d. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage increase e. The marginal costs of pollution reduction decrease and the marginal costs of pollution damage decrease
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.
In the equilibrium of this game:
A. QRS-TV will air a reality show and P-TV will air a sitcom. B. both stations will air sitcoms. C. both stations will air reality shows. D. QRS-TV will air a sitcom and P-TV will air a reality show.
Which of the following reasons for making drug sales illegal do economists generally endorse?
A. That addictive drugs do not allow for people to learn from the mistake of taking them. B. The harm that addictive drugs do to innocent victims and that they do not allow for people to learn from the mistake of taking them. C. The harm they do to innocent victims. D. The harm they do to people who knowingly take them.