Briefly describe the two arguments that economists make to defend the practice of resale price maintenance
First, economists do not agree that resale price maintenance reduces competition. Second, economists argue that the practice has the legitimate goal to provide good customer service, which could be considered a public good and thus subject to the free-rider problem.
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The number of observations minus the number of estimated coefficients in a regression equation is called:
A) degrees of freedom. B) variance. C) standard error fo the regression. D) none of the above.
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the producer surplus?
A. $8 billion B. $4.5 billion C. $12.5 billion D. $6.5 billion
Economists assume people's tastes are
a. determined solely by advertising b. relatively stable over time c. quite variable d. irrelevant to utility analysis e. identical
A health care program administered through Social Security that is applicable to everyone over 65 years old is
a. Medicaid b. Medicare c. federal HMO d. state HMO e. Medicinsurance