If Ben values good X more than good Y, and Catherine values good Y more than good X, a firm can increase its profits by
A) charging the same price for both goods.
B) bundling the goods.
C) selling the goods in a competitive market.
D) charging one price per good.
B
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The coefficients of the VAR are estimated by
A) using a simultaneous estimation method such as TSLS. B) maximum likelihood. C) panel methods. D) estimating each of the equations by OLS.
We think about the cost of supplying labor as the:
A. opportunity cost of the individual's time. B. input costs that go into producing a unit of labor. C. average wage in the labor market. D. the additional equipment and training that is required when hiring a person.
A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. Bush. The effect of that tax cut on consumer spending and aggregate demand was
a. zero. b. likely smaller than if the cut had been permanent. c. likely about the same as if the cut had been permanent. d. likely larger than if the cut had been permanent.
(Consider This) The central idea illustrated by the vignette on "catgut" used as violin strings is:
A. patent rights. B. research and development activity. C. derived demand. D. trade secrets.