Refer to Table 5.1. A risk-neutral individual making a decision solely on the basis of the above information would choose to major in

Increasing marginal opportunity cost implies that

A) that rising opportunity costs makes it inefficient to produce beyond a certain quantity. B) the law of scarcity. C) the more resources already devoted to any activity, the benefits from allocating yet more resources to that activity decreases by progressively larger amounts. D) the more resources already devoted to any activity, the payoff from allocating yet more resources to that activity increases by progressively smaller amounts.

Suppose the real wage of a worker remains unchanged between Year 1 and Year 2 but the nominal wage decreases from $20 in Year 1 to $18 in Year 2. This implies that the price level has _____

Fill in the blank(s) with the appropriate word(s).