Suppose early Friday morning the economics club buys 200 donuts at 25 cents each, and plans to sell all of them later in the day on campus for 50 cents each
Only 60 donuts are sold at 50 cents, however, and by early afternoon the club is seen trying to unload the remaining donuts for 10 cents each. What can we conclude? A) The club was clearly engaging in predatory pricing of donuts.
B) The club was clearly selling below cost.
C) The club clearly misjudged the demand for donuts.
D) All of the above are true.
C
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If a person were given the choice of a $500 credit or a $500 deduction,
A. he would take the deduction if he were poor but the credit if he were rich. B. he would take the deduction if he were rich but the credit if he were poor. C. he would take the deduction every time. D. he would take the credit every time.
Refer to Table 15-4. What is the economically efficient output level?
A) 5 units B) 6 units C) 7 units D) 8 units
In the context of the neoclassical growth model, which of the following does NOT explain the growth rates of countries which are initially poor?
A) nations which are below their steady-state growth paths will grow more slowly until they reach the steady state B) the rate of return is higher in poor countries C) capital flows from rich countries to poor countries D) the passage of time allows poor countries to adopt the productive techniques of rich countries.
Some corporate governance experts believe that serving on a company's board of directors for an extended length of time ________that member's independence from the company's CEO. If this is true, it would tend to ________ the principal-agent problem
A) enhances; increase B) diminishes; increase C) has no impact on; increase D) diminishes; decrease