Over a particular price range, if the quantity effect of a price decrease is larger than the price effect, it implies that:
A) demand is inelastic in the price range.
B) demand is elastic in the price range.
C) the demand curve is vertical in the price range.
D) the demand curve is upward sloping in the price range.
B
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If a technological advance makes it possible to produce computers at a lower cost
A) the demand for computers decreases. B) the demand for computers increases. C) the supply of computers increases. D) the supply of computers decreases.
According to your textbook, which best explains the fact that income inequality has increased in the U.S. since 1980?
A) A growing distrust of the efficacy of federal government spending programs combined with a rising concern over federal budget deficits B) A widening gap between the wages of skilled and extensively-educated workers and the wages of those with fewer skills and less education C) The impact of cheaply-produced and low-priced foreign imports D) Government deregulation of business
Although McDonalds operates in a market structure with many competitors and substitute foods, it often engages in ________ with its major fast food competitors
A) monopoly behavior. B) oligopoly behavior. C) competitive behavior. D) none of the above.
The ways to address agency costs include
a. gathering information about the agent's characteristics before hiring b. gathering information about the agent's actions once hired c. incentivizing agents to work on behalf of principals d. all of the above