Brenda's Bakery started selling coffee along with pastries. In order to increase total sales she should
a. Increase the prices on coffee
b. Decrease the price on pastries
c. Increase the price of pastries
d. Shut down
b
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Economists refer to the general problem of ________ as a principal-agent relationshi
A) moral hazard B) adverse selection C) negative externalities D) pecuniary externalities
In a given market, a large number of firms sell a similar product. Consumers think that each firm's product is somewhat different from that of its competitors. This market is
A) perfectly competitive. B) monopolistically competitive. C) equivalent to a monopoly because consumers think the products are different. D) equivalent to an oligopoly because consumers think the products are different.
Courts must approve ________, that is, formal agreements on remedies between all parties to an antitrust case.
A. consent decrees B. criminal actions C. private actions D. treble damages
In order to move aggregate demand to the level consistent with full employment by means of fiscal policy, government officials who set the budget must know
A) the current level of aggregate demand. B) the level of aggregate demand that would be consistent with full employment. C) the size of the budget changes required to induce the appropriate-sized changes in aggregate demand. D) all of the above.