Regulation A) always increases consumer surplus. B) passes the cost-benefit test. C) solves market failures of all size. D) None of the above. ANSWER D
Date: September 9th, 2020
Mutual interdependence means that A) all firms are price takers. B) each firm sets its own price based on its anticipated reaction by its competitors. C) all firms collaborate to establish one price. D) all firms are free to enter or leave the market. ANSWER B
Date: September 9th, 2020
Which of the following is a test of the statistical significance of the entire regression equation? A) t-test B) R2 C) F-test D) Durbin-Watson test ANSWER C
Date: September 9th, 2020
Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a – bQ. Each firm will produce A) a/b. B) a/2b. C) a/3b. D) a/4b. ANSWER C
Date: September 9th, 2020
One problem with compensation systems is that A) sometimes a manager is rewarded for an objective other than maximizing profits. B) managers are often paid too much. C) owners sometimes want to pursue social objectives. D) the Dodd-Frank Act of 2010 requires shareholder votes on compensation that are non-binding. ANSWER A
Date: September 9th, 2020
In general, there is a(n) ________ relationship between the height/strength of the barriers and the number of firms in an industry. A) direct B) inverse C) constant D) random ANSWER B
Date: September 9th, 2020
If the entire Social Security payroll tax were paid the employees _____. a. firms would be better off b. more individuals would be self-employed c. the nominal wage paid by employers would increase d. the employees after-tax wage would fall ANSWER c
Date: September 9th, 2020
Advocates of steel tariffs to protect American steel firms realize that when imposing such tariffs the gains of firms are outweighed by the losses to consumers. This implies that A) such advocates value producer surplus more than consumer surplus. B) such advocates want to help consumers. C) such advocates value consumer surplus more than producer […]
Date: September 9th, 2020
The coefficient of a linear regression equation indicates A) the change in the dependent variable relative to a unit change in the independent variable. B) the change in the independent variable relative to a unit change in the dependent variable. C) the percentage change in the dependent variable relative to a unit change in the […]
Date: September 9th, 2020
The agency problem can be avoided if A) the firm is not subject to regulation by a government agency. B) the manager and owner can manipulate reported profit. C) the firm has positive profits. D) the goals of the owner and manager are aligned. ANSWER D
Date: September 9th, 2020
