Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold. Author B foregoes the advance and negotiates for a 15% royalty on all books sold. Author C decides to self publish his book and keep 50% of all sales revenue. Which of these authors expects to sell the fewest books?
A) Author A
B) Author B
C) Author C
D) They are all equally likely.
A
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
According to your textbook, critics of "globalization" often fail to understand that
A) money makes the world go round. B) voluntary trade is mutually beneficial. C) economics applies only to capitalist economic systems. D) greed is better than love.
A monopolistically competitive firm is like an oligopolistic firm insofar as
A) both face perfectly elastic demand. B) both can earn an economic profit in the long run. C) both have MR curves that lie beneath their demand curves. D) neither is protected by high barriers to entry.
Neuroeconomics is
A) the study of the activity of a human brain when the person makes economic decision. B) the study of how people behave when they face scarcity. C) the study of situations in which people act economically irrationally. D) the study of how people make decisions at the margin.