Anti-depressants Roche developed a treatment for a rare form of depression that kept patients feeling fine and kept them functioning normally. Sufferers greatly preferred this treatment over alternatives that would tend to put them into a near-catatonic
stupor. However, for a subset of the population with high levels of a certain enzyme, the drug could cause permanent damage and death. So Roche required regular blood tests, and refused to sell to any patients who's levels of this enzyme became elevated. Many blood labs sued to be allowed to perform these blood tests. Why was Roche reluctant to allow third-party blood tests?
Roche is concerned about quality control. If a third-party blood lab failed to find elevated enzyme levels, it would impose the bulk of any liability on Roche, not the lab. Roche could better guarantee quality lab work by vertically integrating into the performance of these tests.
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A depreciation of Israel's currency (the shekel) means that
a. Israel's exports will become more expensive b. Israel's imports will become more expensive c. Israel's imports will become less expensive d. it now requires fewer shekels to exchange for one unit of another currency e. it now requires more of other currencies in exchange for one shekel
There are very few, if any, good substitutes for motor oil. Therefore, the
a. demand for motor oil would tend to be inelastic. b. demand for motor oil would tend to be elastic. c. demand for motor oil would tend to respond strongly to changes in prices of other goods. d. supply of motor oil would tend to respond strongly to changes in people's tastes for large cars relative to their tastes for small cars.
Absolute advantage occurs when one nation can produce a good ____ its trading partners.
A. in larger quantities than B. faster than C. that is desired by D. more efficiently than
A good may be inferior at some income levels and normal at others
What will be an ideal response?