Microsoft wants to calculate the effect of a worldwide 5% price cut on its sales of Excel to clients in different countries. Microsoft sells Excel at different prices in U.S., Japan and Europe. Before the price cut U.S
sales were twice sales in Japan and Europe. If the price of elasticity of demand in the U.S., Japan and Europe are -3, -4, and -2 respectively, the worldwide sales rise by A) 10%.
B) 15%.
C) 20%.
D) 25%.
E) none of the above
B
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There are frequently market solutions that the government can use to deal with externalities
a. True b. False Indicate whether the statement is true or false
Some college students think that because a college degree greatly increases their earning potential there is no opportunity cost of attending college. How would an economist look at the matter?
a. There is no opportunity cost, assuming that future earnings actually increase as expected. b. The opportunity cost is much less than it would appear, assuming that earnings increase. c. Opportunity cost is a meaningless concept in this situation. d. The college students are completely correct in all respects. e. There is still an opportunity cost, even if it is justified by higher future earnings.
All of the following are true except
A. gross investment minus depreciation equals net investment. B. Karl Marx said that capital is produced by the capitalist. C. inventory investment is less stable than investment in plant and equipment. D. capital can be acquired by borrowing, working more or consuming less.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the
equilibrium quantity (Q) of X. Refer to the given information. Consumer expectations that the price of X will rise sharply in the future will: A. increase S, increase P, and increase Q. B. increase D, increase P, and increase Q. C. decrease S, increase P, and increase Q. D. increase D, decrease P, and increase Q.