Diamonds are expensive because:
A. they are a form of conspicuous consumption.
B. the seller of most diamonds in the world restricts output.
C. they are a symbol of luxury.
D. very few diamonds are discovered each year.
Answer: B
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Airlines that charge higher prices for customers who purchase their tickets at the last minute are:
A. not price discriminating because the cost of the ticket is not the same. B. lowering total economic surplus. C. perfect price discriminators. D. price discriminating by identifying passengers with higher reservation prices.
Crowding out can occur when a government budget ________ raises the real interest rate and the equilibrium quantity of investment ________
A) surplus; increases B) deficit; increases C) surplus; decreases D) surplus; does not change E) deficit; decreases
According to the efficient markets hypothesis, who is most likely to benefit from frequently moving funds from one asset to another?
A) your broker B) small investors C) big investors D) only those who consistently beat the market
The faster the rate of technological progress: a. the greater the rate of economic growth
b. the slower the rate of economic growth. c. the greater the rate of population growth. d. the slower the rate of growth of the money supply.