The law of demand states that
A) people demand less at lower prices.
B) the quantity demanded is directly related to price.
C) the quantity demanded is inversely related to price.
D) changes in price and changes in quantity demanded move in the same direction.
C
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The monopsony will hire the amount of labor so that the
A) demand for labor equals supply for labor. B) value of marginal product of labor equals the wage rate. C) value of marginal product of labor equals the marginal cost of labor. D) supply for labor equals the wage rate.
In the 1980s, Japan agreed to limit the quantity of automobiles it would export to the United States. Why did the Japanese government agree to this trade restriction?
A) The Japanese government wanted more automobiles to be available for export to countries other than the United States. B) The Japanese government feared that the alternative would be a tariff or quota on imports of Japanese automobiles imposed by the U.S. government. C) The Japanese government wanted to limit sales to the United States in order to make more automobiles available for Japanese consumers. D) Japanese automobile producers lobbied for the restrictions in order to increase the price of their exports to the United States.
Suppose a survey is taken concerning car safety. According to the survey, people strongly desire safer cars and indicate they are willing to pay substantially more for safer cars
Using this information, one auto firm adds numerous safety features to its car, raising the price by several thousand dollars. Sales drop sharply, and the firm loses profits. What went wrong?
Which of the following attempts to go beyond the basic assumptions of the traditional economic model and augment it with findings from psychology to gain a greater understanding of complex consumer behavior?
a. behavioral economists b. public choice economists c. economic sociologists d. economic psychologists