Refer to the scenario above. Which of the following is likely to happen if Elly is known to be vengeful?
A) Neither of them will make money.
B) Only Elly will make money.
C) Only Elly's employee will make money.
D) Both Elly and her employee will earn money.
D
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Which of the following is considered to be a cost of information?
a. The price of the commodity for which information is collected. b. The time spent to collect the information. c. The difference in price charged by different sellers for the same commodity. d. The difference in price paid by different buyers for the same commodity.
A 2009 Chevrolet model has more horsepower than the 2008 version and is included in the BLS basket of goods. BLS attempts to account for this change in the market basket by
a. dropping the good from the basket. b. substituting in a different vehicle with the same horsepower as the 2008 model. c. adjusting the share of the market basket allocated to transportation. d. adjusting the price of the good to account for the quality change.
In practice, regulatory boards try to set the price of a natural monopoly so that price:
A. equals marginal cost. B. covers all explicit costs. C. is constant over time. D. includes all costs plus a normal return on capital investment.
Which of the following increases demand for a good
A) a rise in the price of a complement B) the expectation that future income will be higher C) an increase in income, assuming the good is an inferior good D) a decrease in the number of buyers E) a fall in the price of a substitute