A mugger steals $25 from John Doe. What can an economist conclude?
A) Nobody gained in the "exchange."
B) Both parties gained in the "exchange."
C) Only the mugger's wealth has increased.
D) Nothing, because economists study strictly voluntary exchanges.
C
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Which of the following is not a limitation that regulators face when they implement average cost pricing?
a. Average cost pricing provides little or no incentive for firms to keep costs down. b. The accurate calculation of a firm's costs is difficult. c. Decisions are political and often influenced by special interests. d. All of the preceding are limitations faced by regulators implementing average cost pricing.
Diminishing marginal utility means that:
a. ?as one consumes more of a good, other things constant, the additional satisfaction obtained from each additional unit of the good tends to fall. b. ?as one consumes more of a good, other things constant, the total satisfaction obtained from consuming the good tends to fall. c. ?as one consumes more of a good, other things constant, the extra satisfaction obtained from each extra good becomes negative. d. ?as one hires more labor, other things constant, the total amount of output produced begins to fall. e. ?as one hires more units of labor, other things constant, the marginal product of labor begins to fall.
The individual supply curve for labor is the relationship between the wage and the quantity of labor that:
A. all workers are willing to provide. B. any given worker is willing to provide. C. all firms are willing to employ. D. any given firm is willing to employ.
The financial crisis in the United States in 2007-2009 brought about all but which of the following changes:
A. a run on money-market mutual funds. B. the placement of the two government-sponsored enterprises for housing finance into conservatorship. C. an increase in the deposit share of the top four U.S. commercial banks. D. a rise in the number of unit banks.