The latest Kanye West album is available to be downloaded for $11.99. Is this price a rationing device?
a. No, the album will be sold to anyone having the required number of dollars.
b. Yes, many will not buy the album because they are unwilling to sacrifice other things $11.99 will buy.
c. No, for price to be a rationing device, it must be so high that only one unit of the item is sold.
d. Yes, since that is a reasonable price.
Ans: b. Yes, many will not buy the album because they are unwilling to sacrifice other things $11.99 will buy.
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According to the text, _________ is a good example of positive institutional change and _________ is an example of destructive institutional change in regard to economic and political institutions.
a. Atlanta, Detroit b. China, Zimbabwe c. Mexico, New Zealand d. Indiana, Missouri
Security purchases by citizens of the United States on foreigners markets is
A) a credit item in the current account. B) a debit item in the capital account. C) a credit item in the capital account. D) a debit item in the current account.
There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
A) -42. B) -15. C) -1.5. D) -27.
If a local community has only one doctor, the monopoly power of the physician will
a. be small if entry barriers into the local market are high. b. depend on how many other physicians there are in the national market. c. be total since there are not any other providers of the same service in the local market. d. be minimal if the entry barriers restricting competition from other physicians are low.