In economic theory, we assume that the goal of the firm is to:
a. maximize sales revenue.
b. maximize market share.
c. maximize the benefits it provides to its customers.
d. maximize the profit.
e. maximize the sales volume.
d
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If the demand is ________, a fall in price ________ total revenue
A) elastic; increases B) elastic; decreases C) inelastic; increases D) inelastic; does not change
In the figure above, if the government provides the efficient amount of education, how many students will be accepted?
A) 8 million per year B) 12 million per year C) 10 million per year D) 16 million per year
Which of the following cities does not have a Federal Reserve Bank?
a. Dallas b. Kansas City c. Los Angeles d. Cleveland e. Miami
Which of the following is a problem of adverse selection?
A. The lender has a problem determining that the proceeds from a loan are being used as the borrower stated. B. A person takes up the hobby of bungee jumping after purchasing health insurance. C. The lender has a problem of distinguishing good risk from bad risk borrowers. D. Individuals use more medical services as a result of their purchase of a health insurance plan.