Your local grocery store reduces transaction costs to the consumer
A. by providing a system that directs funds from lenders to borrowers.
B. by providing a system of justice to enforce contracts.
C. by reducing the consumer's need to travel from food producer to food producer (or manufacturer to manufacturer) to purchase the food staples that the consumer desires.
D. All of these are correct.
Answer: C
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You are the new vice president in charge of advertising at Taco Bell. In your upcoming advertising campaign, you plan to degrade the fast food competitor whose product is the closest substitute for Taco Bell's tacos
That would be the fast food chain whose cross elasticity of demand with your tacos is equal to A) negative 2.11. B) negative 1.75. C) positive 1.55. D) positive 1.00.
Unit root tests
A) use the standard normal distribution since they are based on the t-statistic. B) cannot use the standard normal distribution for statistical inference. As a result the ADF statistic has its own special table of critical values. C) can use the standard normal distribution only when testing that the level variable is stationary, but not the difference variable. D) can use the standard normal distribution but only if HAC standard errors were computed.
A firm is defined as
a. a president, some vice presidents, and some employees. b. any organization that wants to make a profit. c. any accumulation of productive assets. d. any organization that turns inputs into outputs.
The short-run aggregate supply (SRAS) curve shows the inverse relationship between the price level and the quantity of aggregate output supplied in the short run, other things constant
Indicate whether the statement is true or false