Refer to the above figure. All of the following are true concerning the diamond-water paradox EXCEPT
A. marginal utility of diamond consumption is relatively high.
B. since the price of diamonds is high, demand is great.
C. the demand for water exceeds the demand for diamonds.
D. the price of diamonds exceeds the price of water.
Answer: B
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Other things equal:
A. Workers with higher levels of human capital will tend to migrate to countries providing greater wage opportunities B. Workers with lower levels of human capital will tend to migrate to countries providing greater wage opportunities C. Smaller wage differences between countries will tend to increase the flow of immigration between countries D. Workers with higher levels of human capital will migrate to higher-wage countries regardless of the distance between countries
In a prisoners' dilemma game, which of the following strategies gives the best outcome for both prisoners?
A) Both deny (collusion). B) Both confess (not collude). C) One confesses while the other denies. D) none of the above
Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?
What will be an ideal response?
Consider the production possibilities frontier displayed in the figure shown. Which points are efficient and attainable with existing resources?
A. Only point B.
B. Only point A.
C. Points A and D.
D. Points A, C, and D.