A consumer spends less time searching for a good when her reservation price is:

On which of the following government spending projects would the crowding out effect most likely be the greatest?

A) government spending on farm subsidies B) government spending on improvements in infrastructure C) government spending on research and development D) government spending on education

Suppose losses cause industry Z to contract, and as a result, the prices of inputs used intensively in the industry's production process fall. We know, as a result, that industry Z is: a. an increasing cost industry

b. a constant cost industry. c. a decreasing cost industry. d. experiencing diminishing returns.