Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result
A) the supply curve for sugar will shift to the right.
B) the supply curve for sugar will shift to the left.
C) the supply curve for cereal will shift to the right.
D) the supply curve for cereal will shift to the left.
Answer: D) the supply curve for cereal will shift to the left.
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The strategy profile in which both players remain silent in the Prisoners' Dilemma can be described as:
a. non-Pareto optimal and unstable. b. Pareto optimal and unstable. c. non-Pareto optimal and stable. d. Pareto optimal and stable.
The short-run average total cost curve eventually begins to increase at an increasing rate because of
A. increasing returns to scale. B. economies of scale. C. diminishing returns. D. the constraint that the firm cannot change production technologies.
If the graph shown represents Donna's budget constraint, and the price of earrings were to decrease, the slope of Donna's budget constraint would become:
A. flatter, reflecting the fact that hairbands are now relatively more expensive. B. steeper, reflecting the fact that hairbands are now relatively less expensive. C. flatter, reflecting the fact that earrings are now relatively more expensive. D. steeper, reflecting the fact that earrings are now relatively less expensive.
There are two grocery stores in the new neighborhood that you have moved into. Because you did not know which store is better, you decided to go to the one that is relatively crowded. Your behavior is an example of ________
A) herding B) anchoring C) signaling D) sniping