People often complain bitterly when they learn that CEOs of non-profit companies like the United Way or the Red Cross earn salaries commensurate to what could be earned in by CEOs employed by for-profit companies? Is this complaint valid? Explain
What will be an ideal response?
When non-profit companies are looking for CEOs they often have to look for them in both the ranks of the non-profits and profit-making firms as well. In order to be competitive their offers often must be in line with what they can earn elsewhere. In other words, they have to be paid their opportunity cost.
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The American Dairy Association starts a highly successful advertising campaign that makes most people want to drink more milk. As a result,
A) the demand for milk increases. B) the quantity demanded of milk increases. C) the price of milk falls to encourage people to drink more milk. D) the demand for milk is not affected. E) the demand for milk decreases because the price of milk rises.
About what percentage of the poor are children?
a. 13 b. 24 c. 36 d. 60
The long-run industry supply curve will be upward-sloping if:
A. output prices are fixed no matter what the level of output. B. there are no economies or diseconomies of scale. C. input prices are fixed no matter what the level of output. D. input prices increase with the level of output.
When the consumption of a good generates an external benefit:
A. the private benefit consumers receive from the good will be higher than the true social benefit. B. too much of the good will tend to be produced from the viewpoint of economic efficiency. C. the community generally suffers an exactly offsetting external cost from the production of the good. D. the market demand curve will understate the total benefits derived from consumption of the good, and as a result, too little of it will be produced and consumed.