A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
A) decreased the marginal benefit of cheating.
B) recognized that students don't make rational choices.
C) increased the marginal cost of cheating.
D) made all the students act in the social interest.
E) recognized that students don't respond to incentives.
C
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Were the price of gasoline to permanently increase by 10% overnight and stay there for the foreseeable future. Other things constant,
A) the demand for gasoline would fall immediately. B) the quantity demanded for gasoline would fall immediately. C) the quantity demanded for gasoline would fall more dramatically over time D) the quantity demanded for gasoline would remain unchanged, because cars can only be run on gasoline.
When a foreign investor buys a bond issued in the United States,
A) the balance on the financial account increases. B) the balance of trade increases. C) the balance on the current account increases. D) the balance on the capital account increases.
As the U.S. price level rises relative to price levels in other countries, U.S. _____
a. consumption and net exports will both decrease b. consumption and net exports will both increase c. consumption would increase and net exports will decrease d. consumption would decrease and net exports will increase e. consumption and net exports will remain constant
The market under produces public goods because:
a) Of concerns about equity. b) People do not want public goods as much as private goods. c) The government is mandated to produce public goods. d) People are less willing to pay for public goods than for private goods.