In markets-oriented systems, handling of the manager-stockholder conflict in large firms is through
A) rating agencies.
B) the potential for takeovers.
C) management ownership of the firm.
D) bank ownership of the firm.
B
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Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
A) a decrease in the supply of electric cars so that the supply curve shifts rightward. B) an increase in the supply electric cars so that the supply curve shifts rightward. C) an increase in the supply of electric cars so that the supply curve shifts leftward. D) a decrease in the supply of electric cars so that the supply curve shifts leftward. E) no change in the supply of electric cars, only a change in the quantity supplied of electric cars.
A decrease in price will result in an increase in total revenue if:
A) the percentage change in quantity demanded is less than the percentage change in price. B) the percentage change in quantity demanded is greater than the percentage change in price. C) demand is inelastic. D) the consumer is operating along a linear demand curve at a point at which the price is very low and the quantity demanded is very high.
The urban consumers that the CPI is based on does not include:
A. the unemployed. B. the retired. C. persons in prison. D. the CPI does not include any of these.
When revenue is less than total cost but more than variable cost it implies that:
a. the firm is enjoying positive economic profits. b. the firm is earning normal profits. c. the firm can cover its variable cost and a part of its fixed costs. d. the firm is unable to cover its costs and should shut down. e. the firm is able to cover both its fixed and variable costs.