Answer the following statements true (T) or false (F)
1) Industry advertisements work to promote specific brands.
2) Industrywide advertising is an example of a public good.
3) A hot dog sold by a street hot dog vendor is an example of a public good.
4) The quantity of advertising that maximizes the industrywide joint profit, is the quantity that sets the industry wide marginal benefit equal to the marginal cost.
5) If Icy Treats is a large Italian ice dessert chain with franchises located throughout the United States, it is likely that each franchise will have the same advertising marginal benefit schedule.
1) FALSE
2) TRUE
3) FALSE
4) TRUE
5) FALSE
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Which of the following happens during a recession?
A) Labor demand increases. B) The equilibrium wage rate rises. C) Labor supply falls. D) The equilibrium wage rate falls.
A lower price elasticity of demand coefficient occurs when:
a. many substitutes exist. b. the quantity demanded is more responsive. c. few substitutes exist. d. the market is broadly defined.
Differentiate between a change in quantity demanded and a change in demand
Standard and Poor’s gave mortgage-backed securities a ______ rating.
a. AAA b. BBB c. C d. D