Most states have instituted mandatory seatbelt laws to reduce traffic fatalities. An economist may point out that an unintended effect of these laws is
A) an increase in the price of automobiles, further reducing fatalities.
B) an increase in driving speed, reducing the number of accidents.
C) a decrease in driving speed, further reducing fatalities.
D) an increase in risky driving behavior, increasing fatalities.
D
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The MLC curve increases for a monopsonist because
a. hiring more workers raises total labor costs b. output price rises as a firm's market power increases c. hiring more workers does not affect wages d. the later workers hired are less productive e. as more workers are hired, all workers receive higher wages
Even as the U.S. government ran large budget deficits in the early 2000s, the interest rate did not rise substantially. Which of the following is among the reasons that crowding out did not raise interest rates at that time?
A. The Federal Reserve decreased the money supply. B. The government spent the borrowed money in such a way that productivity, and therefore the availability of savings, dramatically increased. C. Americans increased their willingness to save at the same time that the budget deficits appeared. D. Foreigners were willing to finance the U.S. deficit with their abundant supply of savings.
On a Phillips curve diagram, a decrease in the rate of inflation, other things being equal, is represented by a(n):
A. upward movement along the Phillips curve. B. downward movement along the Phillips curve. C. upward shift of the Phillips curve. D. downward shift of the Phillips curve.
Which of the following statements is most accurate about sunk costs?
A. Sunk costs are unrecoverable and therefore shouldn't influence economic decisions. B. All fixed costs are sunk costs. C. All expenditures, once made, represent sunk costs. D. Sunk costs are important in business decisions because they need to be recovered.