Econ Final Exam

A theory is A. An abstraction B. Realistic C. Consistent with observations D. Verifiable

A. An abstraction

Imagine two countries that are equal in all aspects except for one: Country 1 has a high stock of physical capital and country 2 has a low stock of physical capital. Then in this two-country version of the Solow model we would expect A. Capital to flow from country 1 to country 2 B. Capital to flow from country 2 to country 1 C. Capital to be more productive on the margin in country 1 than in country 2 D. a. and c.

A. Capital to flow from country 1 to country 2

Imagine that IU cuts its undergraduate enrollment drastically from 30,000 undergraduates to 10,000, thereby bringing about a substantial reduction in hiring of faculty and staff. This reduction in faculty and staff size will A. Decrease the demand for running shoes in Bloomington B. Increase the demand for running shoes in Bloomington C. Make the demand for running shoes in Bloomington less elastic D. Make the demand for running shoes in Bloomington more elastic

A. Decrease the demand for running shoes in Bloomington

In the production of electricity, we would expect A. Economies of scale B. Diseconomies of scale C. Constant returns to scale D. Many small firms

A. Economies of scale

When average costs are U-shaped, there are A. Economies of scale at low levels of production and diseconomies of scale at high levels of production B. Diseconomies of scale at low levels of production and economies of scale at high levels of production C. Constant returns to scale D. Economies of scale for all levels of production

A. Economies of scale at low levels of production and diseconomies of scale at high levels of production

Gerhard wants to be a rockstar and play the electric guitar. His marginal benefit of practicing the guitar is always/everywhere above the marginal cost of practicing, whatever that may be. Then, if Gerhard is rational, A. He should practice more B. He should practice less C. He should abandon his dream of becoming a rock star D. He should pick up jazz dance

A. He should practice more

If a firm in a competitive market operates where marginal cost is below the price, then the firms should A. Increase output B. Decrease output C. Keep output constant D. Buy more plants from the Canadians

A. Increase output

Between 1950 and 1980 real Japanese GDP per capita relative to real US GDP per capita A. Increased B. Decreased C. Stayed constant D. Decreased at first and then increased

A. Increased

In the 1800s in Maine, lobster was used for fertilizer. Why? A. It was widely available compared to other fertilizer options B. It was more expensive than other fertilizer options C. It was harder to obtain than other fertilizer options D. Your TA likes lobster

A. It was widely available compared to other fertilizer options

Suppose Jack owns 8 pairs of shoes. At 8 pairs of shoes her marginal benefit from one extra pair of shoes is $300. The marginal cost of an extra pair of shoes is $200. Then rational A. Jack should buy more shoes B. Jack should buy fewer shoes C. Jack has purchased the optimal (for Jack) number of shoes D. Jack should go barefoot.

A. Jack should buy more shoes

Jackie is very healthy and expects to remain healthy until she draws her last breath. Jack is expecting to develop all kinds of health problems as he ages. If these assessments are correct, then A. Jackie's marginal benefit of saving is higher than Jack's B. Jackie's marginal benefit of saving is lower than Jack's C. Jackie's marginal cost of saving is higher than Jack's D. Jackie's marginal cost of saving is lower than Jack's

A. Jackie's marginal benefit of saving is higher than Jack's

Jill likes women's college basketball. Her reservation price for a typical single IU game is $10. In two weeks, the nation's top ranked team comes to town. For that game we would expect A. Jill's reservation price to be above $10 B. Jill's reservation price to be below $10 C. Jill's reservation price to stay at $10 D. Jill's reservation price to double

A. Jill's reservation price to be above $10

When Mary gets a raise her A. Marginal cost of housework increases B. Marginal cost of housework decreases C. Marginal benefit of housework increases D. Marginal benefit of housework decreases

A. Marginal cost of housework increases

If the price increase, a competitive firm will A. Produce more B. Produce less C. Experience a shift to the right of the supply curve D. Experience a shift to the left of the supply curve

A. Produce more

In a competitive industry we would expect A. That firms take the price as given B. That there are a few firms that dictate the price C. Each firm to produce where the price is above marginal cost D. Each firm to produce where the price is below marginal cost

A. That firms take the price as given

A country is spending $10 billion on research for an effective coronavirus vaccine. That vaccine, could save potentially 50,000 people. If the value of a statistical life is $ 5 million, then A. The country should spend more on research B. The country should spend the same amount on research C. The country should spend less on research D. The country should ask Brazil to fund research

A. The country should spend more on research

As communities get richer and richer the variety of fresh fruits offered in their grocery stores increases. (If you don't believe that, you may want to ask your grandparents.) Then we would expect over time A. The demand for oranges to become more elastic B. The demand for oranges to become less elastic C. The demand for oranges to increase D. All of the above

A. The demand for oranges to become more elastic

Imagine that in the Solow model the production n function is given by y = Ak, then A. The growth rate is constant over time B. The growth rate is increasing over time C. The growth rate is decreasing over time D. The growth rate increases at first and then decreases.

A. The growth rate is constant over time

The marginal benefit of saving is the extra consumption you can afford in the future. The marginal cost of saving is the consumption foregone today. Currently tax rates are at historic lows, and you are confident that tax rates will have to increase in the future. If taxes will indeed increase in the future, then A. The marginal benefit of saving decreases B. The marginal benefit of saving increases C. The marginal cost of saving increases D. The marginal cost of saving decreases

A. The marginal benefit of saving decreases

You stick $1000 into some asset that pays an annual rate of return of 3.5%. In 20 years, the value of your investment will be in dollars A. 1500 B. 2000 C. 2500 D. 2700

B. 2000

In the Solow growth model, in increase in the rate of depreciation causes A. An increase in the capital stock B. A decrease in the capital stock C. The capital stock to stay constant D. An increase in consumption

B. A decrease in the capital stock

The US government imposes a tariff on t shirts made in China. This tariff acts just like a tax on these t shirts. As a consequence of this tariff A. Americans will by more t shirts from China B. Americans will by more t shirts from Bangladesh C. Americans will produce more t shirts D. Americans will buy more t shirts

B. Americans will by more t shirts from Bangladesh

"Diminishing marginal returns" is A. A fact B. An assumption C. True D. False

B. An assumption

If a firm in a competitive market operates where marginal cost is above the price, then the firm should A. Increase output B. Decrease output C. Keep output constant D. Sell the plant to the German

B. Decrease output

IU and PU are competing for students. There is plenty of relevant information available about these to universities so that students can make ration choices and determine their reservation prices to attend each one of these institutions. While the students are deliberating their choices, a new ranking shows that the job placement rates for PU students has skyrocketed. This new information will A. Increase the reservation price to attend IU B. Decrease the reservation price to attend IU C. Leave the reservation price to attend IU unchanged D. Double the reservation price to attend IU

B. Decrease the reservation price to attend IU

In the above problem with the original valuations by Mary and the original prices, when Mary arrives at the restaurant, she finds out that the only burger available is a bison burger, not the Angus beef that she usually prefers. In this case her opportunity cost of eating chicken has A. Increased B. Decreased C. Stayed constant D. Become irrelevant

B. Decreased

Since about 1980 the productivity of cancer research has A. Increased B. Decreased C. Stayed constant D. Decreased initially and then increased

B. Decreased

In the "therapeutic massage industry," we would expect A. Economies of scale B. Diseconomies of scale C. Constant returns to scale D. A few large firms

B. Diseconomies of scale

The Simpson's price elasticity for gasoline in the short run is 0.1 in absolute value. The price of gasoline rises by 20%. Then their demand A. Rises by 2% B. Falls by 2% C. Falls by 0.2% D. None of the above

B. Falls by 2%

The availability of Covid-19 vaccinations and the widespread use of such vaccines has drastically reduced the risk of getting infected in a restaurant. We would expect this declining risk of getting infected to A. Decrease the demand for restaurant meals B. Increase the demand for restaurant meals C. Make the demand for restaurant meals less price elastic D. All of the above

B. Increase the demand for restaurant meals

In the US the growth rate of real per capita GDP between 1900 and 2000 was roughly constant at 2 % per year. This A. Is consistent with the predictions of the Solow model B. Is inconsistent with the predictions of the Solow model C. Implies that real per capita GDP doubles every 25 years D. Implies that real per capita GDP doubles every 45 years

B. Is inconsistent with the predictions of the Solow model

If an industry is characterized by diseconomies of scale, then we would expect in that industry A. A few very large firms B. Many very small firms C. A mixture of small and large firms D. Elon Musk to own at least 50% of all firms

B. Many very small firms

"Increasing returns" is a situation where A. Marginal costs are upward sloping B. Marginal costs are downward sloping C. Marginal costs are above marginal benefit D. Marginal costs are below marginal benefit.

B. Marginal costs are downward sloping

Mary and Jill both like doing housework equally well. Mary has a degree in Finance from IU, Jill dropped out of high school after 11th grade. If both Mary and Jill are rational, then A. Mary will allocate more hours to housework than Jill B. Mary will allocate fewer hours to housework than Jill C. Mary and Jill will spend the same number of hours doing housework D. Jill will hire a nanny.

B. Mary will allocate fewer hours to housework than Jill

Imagine that there is a per unit tax of $5 on blue blouses. If markets for all blouses are competitive, then the price of red blouses will _____ and the quantity of red blouses purchases will______. A. Rise, fall B. Rise, rise C. Fall, fall D. Fall, rise

B. Rise, rise

Economics can be considered the study of the allocation of ____ resource. A. Ample B. Scarce C. Sufficient D. Abundant

B. Scarce

As the marginal benefit curve for a product shifts to the right, A. The demand curve shifts to the left B. The demand curve shifts to the right C. The marginal cost increases D. The marginal cost decreases

B. The demand curve shifts to the right

Potatoes are considered an inferior good. As a community gets richer over time, we would expect A. The demand for potatoes to increase B. The demand for potatoes to decrease C. The demand for potatoes to become more elastic D. The demand for potatoes to become less elastic

B. The demand for potatoes to decrease

When average costs are downward sloping, we would expect marginal costs A. To be above average costs B. To be below average costs C. To be horizontal D. To be vertical

B. To be below average costs

If fixed costs decrease, then A. Variable costs decrease B. Total costs decrease C. Marginal costs decrease D. Average variable costs decrease

B. Total costs decrease

The US government imposes a tax on all polluting activities in the US. As a consequence of this tax A. pollution in the US goes up B. polluting production moves overseas C. goods get cheaper D. pollution overseas goes down

B. polluting production moves overseas

The law in Indiana allows people to have a petting zoo with large cats as long as the cats do not weigh more than 45 pounds. One of the consequences of the 45 pound legal restriction is that A. the cats are well fed B. the cats are undernourished C. the cats will be regularly vaccinated D. the cats are healthy

B. the cats are undernourished

In the US in the year 2020 average income is $80. Incomes have grown by 3.5% annually. Using the rule of 70, what is average income in the US in 1960 in $? A. 40 B. 20 C. 10 D. 5

C. 10

Imagine a country where in the year 2000 average income is 2000 Schmuckers, (their currency). The annual growth rate of average real per capita income is 14%. Then income in that country in the year 2015 in Schmuckers is A. 4,000 B. 8,000 C. 16,000 D. 32,000

C. 16,000

The price elasticity for movie tickets is 1.2. Then an increase in the price of movie tickets leads to A. An increase in the quantity of movie tickets demanded B. An increase in revenue C. A decrease in revenue D. a. and c

C. A decrease in revenue

If an industry is characterized by constant returns to scale, then we would expect in that industry A. A few very large firms B. Many very small firms C. A mixture of small, medium and large firms D. Prices to be high

C. A mixture of small, medium and large firms

The price elasticity for movie tickets is 0.8. Then a price increase in movie tickets leads to A. In increase in demand B. A decrease in demand C. An increase in revenue D. A decrease in revenue

C. An increase in revenue

The mythical country of Cleanlandia annually spends $ x on enforcing legislation that keeps their air clean. You could determine whether that expenditure is large or small by A. Calculation the expenditure on similar enforcement in that country 50 years ago B. Calculating the equivalent expenditure in some other country C. Calculating that expenditure per inhabitant of Cleanlandia D. Calculating that expenditure in Canadian dollars

C. Calculating that expenditure per inhabitant of Cleanlandia

The thought experiment in question 16 illustrates A. Economies of scale B. Diseconomies of scale C. Constants returns to scale D. Competitive markets

C. Constants returns to scale

The prediction in the Solow model of GDP growing but at declining growth rates is due to the assumption of A. Increasing returns B. Constant returns C. Decreasing returns D. Complementarity between labor and capital

C. Decreasing returns

Income in the 5 richest countries relative income in the 5 poorest counties are A. Roughly 10 % higher B. Roughly 100 % higher C. Higher by a factor of 50 D. Higher by a factor of 12

C. Higher by a factor of 50

Jack is moving into a new apartment. He cannot lift a heavy sleeper sofa by himself. When Jill arrives, the two of them together can move the sleeper sofa into the new apartment. This is an example of A. Opportunity costs B. Diminishing returns C. Increasing returns D. Rationality

C. Increasing returns

When average costs are U-shaped, then marginal costs A. Intersect average costs where average costs are upward sloping B. Intersect average costs where average costs are downward sloping C. Intersect average costs where average costs are minimized D. Are also U-shaped

C. Intersect average costs where average costs are minimized

The law of unintended consequences A. Is of no practical consequence B. Is becoming less and less important as we have more and more date to analyze C. Is a reflection of our incomplete understanding of human behavior D. Was passed by the State Legislature of Indiana in 1982.

C. Is a reflection of our incomplete understanding of human behavior

Moore's Law A. Is an example of arithmetic growth B. Is an example of exponential decline C. Is an example of exponential growth D. Does not hold in the data between 1970 and 2000

C. Is an example of exponential growth

Imagine a firm in a competitive market. Suppose that its marginal cost curve shifts down, then we would expect A. The price to rise B. The price to fall C. Its quantity supplied to rise D. Its quantity supplied to fall

C. Its quantity supplied to rise

Jack and Jill are social scientists. Their interests are the driving habits of Americans. Jack studies the elasticity of the demand for gasoline by taking measurements of driving behavior one month after substantial gasoline price changes. Jill takes similar measurements, but two years after such changes in prices. Then, in absolute value, A. Jack's estimate of the elasticity will be the same as Jill's B. Jack's estimate of the elasticity will be higher than Jill's C. Jack's estimate of the elasticity will be lower than Jill's D. Jack's estimate of the elasticity by at least twice as high as Jill's

C. Jack's estimate of the elasticity will be lower than Jill's

If a firm in a competitive market operates where marginal cost is equal to the price, then the firm should A. Increase output B. Decrease output C. Keep output constant D. Sponsor Nascar

C. Keep output constant

Rudolf's marginal benefit from pulling a sleigh through the snow and ice is exactly equal to Rudolph's marginal cost of pulling the sleigh. If Rudolph is rational, Rudolph should A. Pull more B. Pull less C. Not change the amount of pulling D. Put more gifts on the sleigh

C. Not change the amount of pulling

Which of the following is the best measure of human capital if we want to assess skills of the labor force in a variety of countries? A. Average years of schooling B. Median years of schooling C. PISA scores in math and science D. The college graduation rate

C. PISA scores in math and science

If the price drops below minimum average costs, a competitive firm will A. Produce more B. Produce less C. Produce zero D. Not change its production

C. Produce zero

In the Solow model presented in class an increase in social security payments to the old decreases capital accumulation since it A. Decreases tax rates B. Provides a higher incentive to save C. Provides a lower incentive to save D. Provided an incentive to postpone retirement

C. Provides a lower incentive to save

Your favorite breakfast cereal gets improved, and you find it tastes much better. This change will A. Make your marginal benefit from cereal flatter B. Make your marginal benefit from cereal steeper C. Shift your marginal benefit from cereal up D. Shift your marginal benefit from cereal down

C. Shift your marginal benefit from cereal up

If fixed costs increase, then the entire supply curve A. Shifts to the right B. Shifts to the left C. Stays constant D. Becomes steeper

C. Stays constant

In the above problem the highest amount Mary is willing to pay for lobster, chicken, burger, pizza, mixed vegetables are in dollars, 35, 30, 25, 20, 15. The prices of these goods, in the same order are, also in dollars, 30, 25, 20, 15, 10. If the price of mixed vegetables rises to 12 dollars, then Mary's opportunity cost of eating chicken A. Rises B. Falls C. Stays constant D. Is irrelevant for her decision

C. Stays constant

The largest share of the growth of real per capita GDP in the US since 1950 can be explained by A. The increase in the capital stock per worker B. The increase in educational attainment C. Technological progress D. Increased social security spending

C. Technological progress

Shinywhite and Whityshine are two toothpastes. The price of Shinywhite rises by 35%. Then A. The quantity demanded of Shinywhite rises B. The demand for Whityshine falls C. The demand for Whityshine rises D. a. and c.

C. The demand for Whityshine rises

The quantity of soft drinks demanded is where A. The marginal benefit from soft drinks is bigger than the price B. The marginal benefit from soft drinks is smaller than the price C. The marginal benefit from soft drinks is equal to the price D. None of the above

C. The marginal benefit from soft drinks is equal to the price

Mortality rates from breast cancer in the US fell while A. The number of researchers working on cancer treatment was constant B. The number of clinical trials for cancer treatments was constant C. The number of scientific publications about cancer was increasing over time D. The number of scientific publications about cancer was increasing over time

C. The number of scientific publications about cancer was increasing over time D. The number of scientific publications about cancer was increasing over time

Imagine Jack owns a plant in Columbus, IN that makes ball bearings. Jack builds a new plant to make ball bearings in Kokomo, IN. Production in the second plant exactly duplicates all inputs from the Columbus plant. All prices of inputs are the same in Columbus and Kokomo. Then we would expect costs in Kokomo to be A. Higher than in Columbus B. Lower than in Columbus C. The same as in Columbus D. Astronomical

C. The same as in Columbus

The point/goal of a theory/model is A. To be realistic B. To be mathematically elegant C. To help understand the complex relationships between variables D. To be as general as possible

C. To help understand the complex relationships between variables

The City of Bloomington removes homeless people from People's Park. As a consequence of this action A. homelessness in Bloomington increases B. homelessness in Bloomington decreases C. homeless people in Bloomington will search out another park nearby D. homeless people will move to Columbus

C. homeless people in Bloomington will search out another park nearby

An instructor at IU announces on the first day of class that all lectures will be recorded and that all lecture notes, all power points and all recordings will be posted on canvas in a timely manner. As a consequence of this announcement A. students will get better grades B. students will get worse grades C. students will attend class less D. students will attend class more

C. students will attend class less

A theory should be A. general B. elegant C. useful D. technical

C. useful

Hermannus goes on nice vacation along the Norwegian fjords. The price of the vacation is $2000. While on vacation Hermannus forgoes his income being a tutor for medieval German. That forgone income is $500. Hermannus' opportunity cost of the Norwegian vacation is A. 0 B. 500 C. 2000 D. 2500

D. 2500

A competitive firm will A. Take the price a given B. Act as price taker C. Be unable to influence the price D. All of the above

D. All of the above

A university professor announced on the first day of class that the final exam in her class is the hardest final the students will ever have on campus and that the pass rate on that exam is typically about 35 %. The following are ways students might respond to this announcement. A. Some students will drop the class B. Some students will decide to study harder for the final C. Some students study habits are unaffected by this announcement D. All of the above

D. All of the above

In the Solow model presented in in class, an increase in the savings rate causes A. An increasing in investment B. An increase in the steady state level of output C. An increase in the steady state level of capital D. All of the above

D. All of the above

Increased subsidies for attending college are expected to A. Increase the stock of human capital B. Increase the stock of physical capital, if human and physical capital are complements C. Increase GDP if initial college attendance is low D. All of the above

D. All of the above

When teachers are rewarded through bonuses or higher salary increases for higher test scores of their students, teachers A. Have an incentive to seek employment in schools with more gifted students B. Have an incentive to cheat on behalf of their students C. Feed sugary caffeinated drinks to their students D. All of the above

D. All of the above

The Solow growth model predicts that A. Capital decreases at increasing rates B. Capital increases at increasing rates C. Capital grows at a constant rate D. Capital increases at a decreasing rate

D. Capital increases at a decreasing rate

Rationality means A. Choosing a level of activity where marginal benefit is highest B. Choosing a level of activity where marginal cost is lowest C. Choosing a level of activity where marginal cost is far below marginal benefit D. Choosing a level of activity where marginal benefit is equal to marginal cost

D. Choosing a level of activity where marginal benefit is equal to marginal cost

According to the law of demand, an increase in the price of cauliflower A. Increases the demand for cauliflower B. Decreases the demand for cauliflower C. Increases the quantity demanded of cauliflower D. Decreases the quantity demanded of cauliflower

D. Decreases the quantity demanded of cauliflower

Jack likes to go out and have pizza with his buddies. He always looks forward to that first slice. The second slice usually is a tad less enjoyable than the first. By the fourth slice, most of the thrill of eating pizza is gone. This is an example of A. Opportunity cost B. Rational choice C. Increasing returns D. Decreasing returns

D. Decreasing returns

The point of creating "a parallel universe" is to A. Detect a correlation between two variables B. See a pattern in the data C. Create a stimulating environment for video game games D. Detect causation in two related variables

D. Detect causation in two related variables

The Simpson's price elasticity for mouthwash is 0.01 in absolute value. The price of mouthwash rises by 50%. Then quantity demanded of mouthwash A. Rises by 5% B. Falls by 5% C. Rises by 0.5% D. Falls by 0.5%

D. Falls by 0.5%

Beckie loves drinking coffee with a good amount of hazelnut flavored coffee creamer. If that kind of coffee creamer is unavailable A. Her marginal cost of coffee rises B. Her marginal cost of coffee falls C. Her marginal benefit of coffee rises D. Her marginal benefit of coffee falls

D. Her marginal benefit of coffee falls

The Solow model predicts that A. Rich countries become poorer B. Poor countries will surpass rich countries in income C. Income in poor countries grows at increasing rates D. Income in poor countries will converge to income in rich countries

D. Income in poor countries will converge to income in rich countries

Jack and Jill both love to eat burgers. Jill is more openminded than Jack and would consider eating non-meat-based burgers. Jack would never consider non-meat-based burgers. Based on this information A. Jack's demand for burgers is higher than Jill's B. Jack's demand for burgers is lower than Jill's C. Jack's demand for burgers is more elastic than Jill's D. Jack's demand for burger's is less elastic than Jill's

D. Jack's demand for burger's is less elastic than Jill's

You discover a better charcoal that makes the burgers you grill taste better. As a consequence of having discovered the better charcoal, your A. Marginal cost of burgers has increased B. Marginal cost of burgers has decreased C. Marginal benefit from burgers has decreased D. Marginal benefit from burgers has increased

D. Marginal benefit from burgers has increased

Jill purchases her eggs for breakfast directly from Farmer Brown. Farmer Brown sells free roam, no pesticide, organic eggs. Starting October 1, Farmer brown changed this and as a consequence the eggs no longer taste like eggs Jill used to love. As a consequence of this change, Jill's A. Marginal cost of eating eggs shifts up B. Marginal cost of eating eggs shifts down C. Marginal benefit from eating eggs shifts up D. Marginal benefit from eating eggs shifts down

D. Marginal benefit from eating eggs shifts down

Moore's Law is an example of A. Economies of scale B. Diseconomies of scale C. Constant returns to scale D. None of the above

D. None of the above

Which one of the following has the highest, in absolute value, elasticity of demand? A. Coffee B. Organic coffee C. Fair trade coffee D. Organic fair-trade coffee

D. Organic fair-trade coffee

The estimates of the elasticity of demand tend to increase if longer time horizons are considered because A. Supply is elastic B. Supply is inelastic C. Over time, households will find themselves more and more locked in D. Over time, household will tend to find more ways to adjust their behavior

D. Over time, household will tend to find more ways to adjust their behavior

The country of Superintelligentia wants to improve educational outcomes. To that end the country decides to provide special rewards to teachers if their students perform well on national standardized tests. Which of the following is probably not a consequence of this policy reform? A. Teachers try to cheat for their students B. Teachers offering extra tutoring help for their students C. Teachers working harder to prepare their classes D. Teachers retiring early

D. Teachers retiring early

Mary is planning to go out for dinner Friday night. Before she goes out, she makes a list of the preferences over meals. Mary prefers lobster over chicken, chicken over a burger, a burger over pizza, pizza over mixed vegetables. When she gets to the restaurants, she finds out that the lobster is not available. She chooses the chicken. Her opportunity cost of choosing the chicken is the value she would have obtained from A. Lobster B. Mixed vegetables C. Pizza D. The burger

D. The burger

There are two goods, X and Y. We observe that as the price of X rises the demand for Y falls. We may conclude that A. Y is a normal good B. Y is an inferior good C. X and Y are substitutes D. X and Y are complements

D. X and Y are complements

You are playing center mid on your intra mural soccer team. At the beginning of the season, your teammates always played their hearts out and your team won quite a few games. In today's game you realize that your teammates don't want to run, they don't seem to have their heart in the game. As a consequence A. Your marginal cost of playing hard rises B. Your marginal cost of playing hard falls C. Your marginal benefit of playing hard rises D. Your marginal benefit of playing hard falls

D. Your marginal benefit of playing hard falls

Mouthwash and toothpaste are complements. The price of toothpaste rises by 25%. Then A. The quantity of toothpaste demanded falls B. The demand for mouthwash rises C. The demand for mouthwash falls D. a. and c.

D. a. and c.

Causality can be established by A. creating a histogram B. establishing a positive correlation C. establishing a negative correlation D. creating a parallel universe

D. creating a parallel universe