The closer the Lorenz curve is to the diagonal, the more unequal the distribution of income. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
When negative network externalities are present A) the demand curve is more elastic than otherwise. B) the demand curve is less elastic than otherwise. C) the demand curve shifts to the right. D) the demand curve shifts to the left. ANSWER B
Date: September 9th, 2020
Refer to Figure 8.1. At the profit-maximizing level of output, total profit is A) -$120. B) $0. C) $432. D) $600. E) $603. ANSWER E
Date: September 9th, 2020
Refer to Scenario 15.1. If the interest rate falls, A) the present value of this contract will fall. B) the present value of this contract will be unaffected. C) the present value of this contract will rise. D) Jacob will be paid less than $10 million each year. E) Jacob will be paid more than […]
Date: September 9th, 2020
A Gini coefficient of 0 represents perfect equality in the distribution of income. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The monopoly supply curve is the A) same as the competitive market supply curve. B) portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. C) result of market power and production costs. D) none of the above ANSWER D
Date: September 9th, 2020
Refer to Scenario 17.1. The lowest level of y* that can be set and still have only the high-productivity people meet it is A) 16. B) 13 1/3. C) 13. D) 8. E) 0. ANSWER D
Date: September 9th, 2020
Class stratification refers to a situation in which people are trapped in a particular income rank. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
The bandwagon effect corresponds best to which of the following? A) Snob effect B) External economy C) Negative network externality D) Positive network externality ANSWER D
Date: September 9th, 2020
In the game in Scenario 13.6, what is the Nash equilibrium? A) The strategy pair associated with -$100, -$1. B) The strategy pair associated with $2, -$0.5. C) The strategy pair associated with $1, -$1. D) The strategy pair associated with -$0.5, -$0.5. E) There is no Nash equilibrium in pure strategies. ANSWER B […]
Date: September 9th, 2020
