Firms would like to know the price elasticity of demand for their products because it helps determine the effect of price changes on the firms'
a. property taxes
b. competitors' profits
c. quantity supplied
d. revenues
e. total costs
D
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Refer to the scenario above. The average payoff of the bet is:
A) $50. B) $100. C) -$50. D) -$100.
Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?
a. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. b. Public-sector managers face fierce competition. c. Public-sector managers have no fear of losses and bankruptcy when operational efficiency is not achieved. d. All of the above explain why government agencies have little incentive to be efficient.
The estimated demand for a good is
= 25 - 5P + 0.32M + 12PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. The coefficient on P
A. should have the same sign as the coefficient on PR. B. is negative as expected. C. does not have the expected sign. D. should not be greater than one (in absolute value). E. both b and d
Related to the Economics in Practice on p. 626: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to
A. adopt other countries' policies until it reaches the frontier of the rest of the world. B. support its own innovative efforts until it reaches the frontier of the rest of the world. C. first adopt other countries' policies, and as the country approaches the frontier, shift to supporting its own innovative efforts. D. first support its own innovative efforts, and as the country approaches the frontier, shift to adopting other countries' policies.