Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities
b. the idea that some people receive utility from goods they believe are popular
c. income and substitution effects
d. switching costs
b. the idea that some people receive utility from goods they believe are popular
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The larger the U.S. imposed per unit import tariff on a good imported and produced in the U.S.,
A) the smaller the U.S. consumer surplus. B) the larger the U.S. producer surplus. C) the larger the government revenue. D) All of the above.
When the government _____________ mortgage lending standards, the indirect result is likely to be _____________ home prices
A) lowers; higher B) increases; lower C) lowers; lower D) increases; higher E) a and b
Refer to the graph below for a monopolist in short-run equilibrium. This monopolist will charge a price:
A. 0A
B. 0B
C. 0C
D. Not labeled on the graph
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the
Three-Sector-Model? a. The GDP Price Index rises, and nominal value of the domestic currency falls. b. The GDP Price Index falls, and nominal value of the domestic currency rises. c. The GDP Price Index rises, and nominal value of the domestic currency remains the same. d. The GDP Price Index falls, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.