A professor changes the penalty for cheating on exams from getting a 0 on the exam to getting an F in the course. The professor has
A) decreased the marginal benefit of cheating.
B) recognized that students don't make rational choices.
C) increased the marginal cost of cheating.
D) made all the students act in the social interest.
E) recognized that students don't respond to incentives.
C
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At _____, Saturday's average is also lower than Tuesday, which averages $497
Fill in the blank(s) with the appropriate word(s).
Keynes thought that the behavior of the economy in the short run was influenced by what he called "animal spirits." By this he meant that business people sometimes felt good about the economy, and carried out lots of investment, and at other times felt
bad about the economy, and so cut back on their investment spending. Explain how such fluctuations in investment would lead to fluctuations in real GDP and prices.