Which of the following most clearly illustrates the concept of derived demand?
a. An increase in the price of steak causes the demand for poultry to increase.
b. An increase in the demand for new houses leads to an increase in the demand for construction workers.
c. An increase in consumer income leads to an increase in the demand for services provided by the government.
d. An increase in the demand for new cars causes the demand for used automobiles to rise.
b
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Define the following terms: a) risky outcome. b) probability
What will be an ideal response?
Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the total variable cost is:
A. $2,800. B. $4,000. C. $4,500. D. $6,300.
What is the sociopolitical significance of income shares; that is, what might income shares tell us about the overall character of our society? What implications might income shares have for economic stability? For economic growth?
What will be an ideal response?
Risk-averse managers often select a secure strategy that provides the
A. lowest payoff among the best payoffs. B. lowest payoff among the worst payoffs. C. highest payoff among the best payoffs. D. highest payoff among the worst payoffs.