The ability of employees to ________ might reduce the possibility or effectiveness of monitoring. A) use the Internet B) complain to management C) telecommute D) change jobs ANSWER C
Date: September 9th, 2020
One possible source of inefficiency in bargaining is A) that there are multiple Nash equilibria. B) bounded irrationality. C) that the Nash product may be indeterminant. D) that the bargaining process takes time. ANSWER D
Date: September 9th, 2020
The principle marginal revenue equal-marginal-cost rule for maximizing profit A) does not apply to firms in the monopoly or oligopolistic industries. B) applies only for firm in perfect competition but not in monopolistic competition. C) applies to new firms but not to existing firms in an industry. D) applies to all the firms in all […]
Date: September 9th, 2020
Remembering that demand elasticity is defined as the percentage change in quantity divided by the percentage change in price, if price decreases and, in percentage terms, quantity rises more than price has dropped, total revenue will A) increase. B) decrease. C) remain the same. D) either increase or decrease. ANSWER A
Date: September 9th, 2020
If the demand for a product is said to be relatively inelastic, the “absolute” value of the elasticity coefficient will be A) less than one. B) greater than one. C) equal to one. D) zero. ANSWER A
Date: September 9th, 2020
A firm that practices group price discrimination will set the lower price in the market that has the most elastic demand. Indicate whether the statement is true or false ANSWER True . The firm will equate marginal revenue across markets. Since MR = p(1 + 1/elasticity), markets with greater elasticity require lower prices.
Date: September 9th, 2020
Suppose Lisa spends all of her money on books and bagels, and a bagel is an inferior good for her. When the price of coffee increases, the A) consumption of coffee will fall. B) consumption of coffee will rise. C) consumption of coffee will not change. D) Not enough information. ANSWER B
Date: September 9th, 2020
Limited liability is a benefit available only to A) sole proprietorships. B) partnerships. C) corporations. D) All of the above. ANSWER C
Date: September 9th, 2020
Suppose the government currently places tariffs and/or other import restrictions on good X. Will imposing a tariff and/or trade restriction on good Y necessarily reduce overall social welfare for the economy? What will be an ideal response? ANSWER No, this follows from the contrapositive of the Theory of the Second Best. If removing one […]
Date: September 9th, 2020
A sale in which property or a service is sold to the highest bidder is called a(n) A) auction. B) bidder sale. C) competitive market. D) Austrian bundle. ANSWER A
Date: September 9th, 2020
