Economists believe that in regards to criminal behavior:
a. people engage in criminal activity because they are genetically predisposed to do so.
b. those choosing to commit criminal acts weigh the expected marginal benefits versus the expected marginal costs.
c. individuals are irrational and don't respond to incentives.
d. economics can shed very little light on the subject
Answer: b. those choosing to commit criminal acts weigh the expected marginal benefits versus the expected marginal costs.
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In the above figure, what would result if the price was $40?
A) a surplus B) a shortage C) equilibrium D) excess demand
Suppose Sam's Shoe Co. makes one kind of shoe. An example of a variable cost for this company would be:
A. the design pattern for the shoes. . B. the leather needed to make the shoes. C. the lease to the factory building. D. All of these are examples of variable costs.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and real GDP in the context of the Three-Sector-Model? Assume the nominal exchange rate is stated as: (Domestic currency per foreign currency)
a. The real exchange rate rises and monetary base rises. b. The real exchange rate falls and monetary base falls. c. The real exchange rate falls and monetary base rises. d. The real exchange rate and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Normative economic principles are concerned with how people ________ make decisions while positive economic principles are concerned with how people ________ make decisions.
A. do; should B. in ordinary life; in power C. in power; in ordinary life D. should; do