Assume X is an inferior good. If the incomes of people who buy X increase, demand for X will increase as well, but by a smaller percentage than the increase in income. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
To an economist, ________ is anything that is generally accepted in payment for goods and services or in the repayment of debt. A) wealth B) income C) money D) credit ANSWER C
Date: September 10th, 2020
The market demand for a good is determined by horizontally summing the demand curves of individual consumers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Regression analysis that analyzes the relationship between one dependent variable and several independent variables is called: A) simple regression analysis. B) correlation analysis. C) multiple regression analysis. D) cluster analysis. ANSWER C
Date: September 10th, 2020
Currency includes A) paper money and coins. B) paper money, coins, and checks. C) paper money and checks. D) paper money, coins, checks, and savings deposits. ANSWER A
Date: September 10th, 2020
Financial institutions search for ________ has resulted in many financial innovations. A) higher profits B) regulations C) respect D) higher risk ANSWER A
Date: September 10th, 2020
Perfectly competitive firms are said to be “small.” Which of the following best describes this smallness? A) The individual firm must have fewer than 10 employees. B) The individual firm faces a downward-sloping demand curve. C) The individual firm has assets of less than $2 million. D) The individual firm is unable to affect market […]
Date: September 10th, 2020
Third-degree price discrimination refers to situation in which: A) a firm charges different prices for different blocks of output. B) a firm separates markets according to the price elasticity of demand. C) a firm is able to charge the maximum price consumers are willing to pay for each unit of output. D) a firm divides […]
Date: September 10th, 2020
The situation in which a firm is able to charge the maximum price consumers are willing to pay for each unit of output the firm sells is referred to as: A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) fourth-degree price discrimination. ANSWER A
Date: September 10th, 2020
Use the firm’s long-run cost-minimizing decision rule to explain the differences in the relative use of capital and labor in agriculture in the United States and the Peoples Republic of China. What will be an ideal response? ANSWER The rule for cost minimization states that inputs should be employed such that the ratio of […]
Date: September 10th, 2020
