The approach to analyzing consumer behavior that asks consumers to rank and choose among different product attributes to reveal their relative valuation of different characteristics is called: A) a direct consumer survey. B) contingent valuation. C) the hedonic estimation technique. D) conjoint analysis. ANSWER D
Date: September 10th, 2020
The real interest rate, business taxes, expected profits and business confidence, and capacity utilization are embedded in the slope of the investment function. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
When demand is elastic, the marginal revenue resulting from a decrease in price is: A) positive. B) zero. C) negative. D) cannot be determined without more information. ANSWER A
Date: September 10th, 2020
Which of the following statements is correct? A) The markup pricing rule that is derived from the rule for profit maximization can be used as a substitute for determining the profit-maximizing level of output by equating marginal revenue and marginal cost. B) It is reasonable to assume that a profit-maximizing firm will never operate in […]
Date: September 10th, 2020
Fear of a major recession causes stock prices to fall, everything else held constant, which in turn causes consumer spending to A) increase. B) remain unchanged. C) decrease. D) cannot be determined. ANSWER C
Date: September 10th, 2020
In the foreign exchange market, U.S. residents wishing to purchase foreign exports or foreign real and financial assets must: A) demand U.S. dollars by supplying foreign currency. B) demand U.S. dollars by supplying U.S. dollars. C) supply U.S. dollars by demanding foreign currency. D) none of the above. ANSWER C
Date: September 10th, 2020
Which of the following approaches to understanding and predicting consumer behavior depends primarily on the knowledge and experience of a firm’s employees and its suppliers? A) Direct consumer surveys. B) Expert opinion. C) Analysis of historical data. D) Test marketing and price experiments. ANSWER B
Date: September 10th, 2020
In the foreign exchange market, the quantity U.S. dollars demanded is a function of: A) the amount of imports and the level of capital outflows. B) the amount of exports and the level of capital outflows. C) the amount of exports and the level of capital inflows. D) none of the above. ANSWER C
Date: September 10th, 2020
What are the two primary factors that influence a firm manager’s choice between a labor-intensive and a capital-intensive method of production? How does each factor influence the manager’s choice. What will be an ideal response? ANSWER The two primary factors are the technology of the production process and the prices of the inputs of […]
Date: September 10th, 2020
A firm’s investment expenditures are positively related to market interest rates. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
