Why don’t we see firms tie-in the sales of fish filets with the sales of pencils? A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act […]
Date: September 9th, 2020
Which of the following is a test of the statistical significance of a particular regression coefficient? A) t-test B) R2 C) F-test D) Durbin-Watson test ANSWER A
Date: September 9th, 2020
The Herfindahl-Hirschman (HH) Index is used to A) measure the degree of nonprice competition. B) measure the degree of market concentration in an industry. C) measure the extent of price leadership. D) None of the above ANSWER B
Date: September 9th, 2020
At the XYZ Co, a unit of capital costs three times as much as a unit of labor. If MPK = 10, MPL = 5, then this firm A) is minimizing its cost at current output level. B) should use more capital and less labor to raise output at current cost. C) should use less […]
Date: September 9th, 2020
Regulation might NOT increase total surplus because A) the costs of the regulation might outweigh the benefits. B) it may not be possible to gather the information necessary to set prices correctly. C) regulators might get captured by the industry. D) All of the above. ANSWER D
Date: September 9th, 2020
When attempting price regulation a government faces what problem(s)? A) limited information B) bribes C) uncooperative firms D) All of the above. ANSWER D
Date: September 9th, 2020
Prior to 1984, which of the following groups were exempted from the Social Security program? a. federal workers b. Teamsters c. members of Congress d. a and c ANSWER d
Date: September 9th, 2020
The Social Security program is unique in that employees can _____ the amount shown on their W-2 form and find out _____. a. look at; their share of the cost of Social Security b. double; their annual contributions to their retirement c. look at; their annual contributions to their retirement d. double; their share of […]
Date: September 9th, 2020
A company that undertakes an activity so that it can “do well by doing good” is practicing A) strategic corporate social responsibility. B) altruistic corporate social responsibility. C) profit sharing. D) the survivor principle. ANSWER A
Date: September 9th, 2020
Mutual interdependence occurs when A) all firms in an industry are affected by the same macro economic conditions, such as a recession, inflation, interest rates, exchange rates, etc. B) the actions of firms are independent of each other. C) the actions of one firm in an industry are easily recognized and perhaps copied by others. […]
Date: September 9th, 2020
