When two people agree to a price in a negotiation, we can assume that:
A. each one will receive equal benefits from the transaction.
B. only one of the parties will benefit, but there is not enough information to determine which one it will be.
C. the seller will receive more benefit from the transaction than the buyer.
D. both parties will benefit.
Answer: D
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A) buyers. B) the government. C) sellers. D) all of the above
If you sold a short contract on financial futures you hope interest rates
A) rise. B) fall. C) are stable. D) fluctuate.
Related to the Economics in Practice on page 125: A reduction in the salience of prices should ________ consumer responses to price increases.
A. not change B. completely eliminate C. increase D. reduce
Refer to the data provided in Table 9.1 below to answer the question(s) that follow.
Table 9.1
Refer to Table 9.1. In the long run, if cost conditions do not change, this firm will earn a zero economic profit if price is
A. $10. B. $15. C. $20. D. $28.