Often, in criminal court, the judge will sentence a defendant to 10 days in jail or a $500 fine. Some choose jail time, others the fine. What best determines their choice?
a. They compare the loss of utility from doing time versus the loss of utility from giving up the $500 . If the loss of utility associated with the $500 is greater, they willchoose jail time
b. If they can earn $500 or more in 10 days, they will choose the fine.
c. If they can earn no more than $499 in 10 days, they will choose the fine.
d. Jail time generally has a utility of zero. If the utility of the $500 is greater than zero, they will choose the fine.
e. Jail time generally has a utility of zero. If the utility of the $500 is greater than zero, they will choose jail time.
A
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Answer the following statement true (T) or false (F)
Those who oppose minimum wage legislation argue that:
A. setting a wage above the market-clearing equilibrium creates unemployment. B. it should be set below the market-clearing equilibrium. C. workers deserve a basic standard of living. D. the way to get an efficient labor market is for government intervention.
When banks borrow from each other the interest rate charged is known as the
a. discount rate. b. prime rate. c. federal funds rate. d. over-the-counter rate.
Which list has market structures in the correct order from the most to the least market power?
a) Oligopoly, perfect competition, monopolistic competition, monopoly b) Monopoly, oligopoly, monopolistic competition, perfect competition c) Perfect competition, oligopoly, monopolistic competition, monopoly d) Monopoly, monopolistic competition, oligopoly, perfect competition