A recent study found that an increase in the federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:
A. beer and marijuana are substitute goods.
B. beer and marijuana are complementary goods.
C. beer is an inferior good.
D. marijuana is an inferior good.
Answer: B
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If in the short run, at the profit maximizing level of output, the average revenue curve of a competitive firm lies above the average cost curve then:
a. the firm is incurring losses. b. the firm is just able to cover its total cost. c. the firm enjoys above-normal profits. d. the firm must shut down. e. the firm is barely able to cover its variable costs.
Minimum-wage laws are least likely to affect the wages paid to
a. teenagers. b. low-skill workers. c. inexperienced workers. d. highly-educated workers.
Under the Bretton Woods system established after WWII,
A. each countries currency was backed by gold B. exchange rates between countries floated C. exchange rates were fixed and only the dollar was convertible into gold D. gold had no role
Which of the following is NOT a firm-specific advantage of an MNE?
A. Native understanding of local customs B. Patented technology C. Marketing capabilities D. Superior management technique