After completing your observations of Officer Jones, you are asked to summarize your observations for a study being conducted by an ethicist studying police behavior. Assume that the waitress at the diner was new, and did not know about Officer Jones' arrangement with the owner. She brought a check for the food and coffee, and Officer Jones grudgingly paid. Because the choice of the diner was motivated by Officer Jones' desire for a free meal, ____________ would consider his actions immoral even though he paid.

If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level

A) does not change and the inflation rate is zero. B) falls and the inflation rate is negative. C) rises and the inflation rate is negative. D) falls and the inflation rate is positive. E) rises and the inflation rate is positive.

Banks have attempted to maintain adequate profit levels by

A) making fewer riskier loans, such as commercial real estate loans. B) pursuing new off-balance-sheet activities. C) increasing reserve deposits at the Fed. D) decreasing capital accounts.

Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is TRUE?

A) The production function has decreasing returns to scale. B) The production function has increasing returns to scale. C) The production function has constant returns to scale. D) Returns to scale vary with the level of output.

Almost all economists agree that local and state governments should

a. eliminate subsidies to professional sports franchises. b. increase subsidies to professional sports franchises. c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work.