Understanding how individual sectors of the economy will respond to changes in key economic variables gives us a better understanding of how the macroeconomy behaves. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In which of the following examples cited in the text is there the least amount of evidence of the potential for input substitution? A) Automobile production. B) Pipe organ production. C) French fry production. D) Production of health care services. ANSWER B
Date: September 10th, 2020
Which of the following is not an example of a noncooperative oligopoly model? A) The kinked demand curve model. B) The model of limit pricing. C) The prisoner’s dilemma game. D) The cartel model. ANSWER D
Date: September 10th, 2020
Which of the following is a plausible reason that restaurants offer “Senior Citizen Discounts”? A) Senior citizens tend to have relatively more elastic demands for restaurant meals than other consumer groups. B) Senior citizens tend to have relatively more inelastic demands for restaurant meals. than other consumer groups. C) Senior citizens are not very sensitive […]
Date: September 10th, 2020
The assumption that rival firms will match a firm’s price decreases but not its price increases is a basic feature of: A) model of limit pricing. B) the kinked demand curve model. C) the predatory pricing model. D) cartel theory. ANSWER B
Date: September 10th, 2020
Which of the following would have the least amount of influence on a manager’s choice of which inputs to employ in a production process? A) The price of a competitor’s output. B) The technology of the production process. C) The marginal productivity of the inputs that can be used in the production process. D) The […]
Date: September 10th, 2020
Sound business decision making requires a firm understanding of both microeconomic and macroeconomic concepts. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Suppose an oligopolistic firm raises the price of its output. Demand for the firm’s output will be relatively price ________ if the other dominant firms in the market ________. A) elastic; do not raise price B) unit elastic; do not raise price C) inelastic; also raise price D) cannot be determined ANSWER A
Date: September 10th, 2020
According to one study, the price elasticity of demand for restaurant meals is -2.27. This implies that if restaurants want to increase their total revenues they should: A) increase prices. B) decrease prices. C) leave prices unchanged. D) cannot be determined with the information given. ANSWER B
Date: September 10th, 2020
Assume a firm is currently employing 20 units of capital and 100 units of labor in its production process. Assume also that the marginal product of the 20th unit of capital is 40 units of output, the marginal product of the 100th unit of labor is 10 units of output and the per unit prices […]
Date: September 10th, 2020
