In general, risk-averse individuals experience diminishing marginal utility from income.
Answer the following statement true (T) or false (F)
True
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A government ban on a good that suffers from overconsumption may be ineffective if the:
A. likelihood of being caught breaking the ban is sufficiently high. B. likelihood of being caught breaking the ban is very low. C. punishment for breaking the ban is severe. D. public did not participate in setting the punishments.
The natural rate of unemployment equals
A) structural plus frictional plus cyclical unemployment. B) structural plus frictional unemployment. C) the rate of unemployment we observe in any given period of measurement. D) the rate of structural unemployment.
An increase in demand occurs when
A) we measure price in money price rather than real price. B) we move up the demand curve. C) the demand curve shifts to the right. D) the demand curve shifts to the left.
An industry in which an increase in output leads to a reduction in long-run per-unit costs is a(n)
A) increasing-cost industry. B) constant-cost industry. C) break-even cost industry. D) decreasing-cost industry.