Which of these motivate a firm to use nonmarket transactions to acquire inputs and downstream services?
A. Imposition of low tax rates on a particular production unit
B. Zero transaction costs in the spot market
C. Steady supply of the key input used in production
D. Absence of market power
Answer: A
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $9 to $7 is
A. -1.16. B. -2.27. C. -.63. D. -1.60.
An increase in capital outflows from the United States will
A) decrease the balance on the capital account. B) decrease the balance on the financial account. C) increase the balance on the financial account. D) increase the balance on the current account.
As of 2010, the FDIC insured deposit accounts up to which of the following amounts?
A) $10,000. B) $25,000. C) $100,000. D) $250,000.
The labor-supply curve will be downward sloping if the:
A. income effect outweighs the price effect. B. price effect outweighs the income effect. C. substitution effect outweighs the income effect. D. The labor-supply curve is never downward sloping.