Kip will work fewer hours if his salary increases. For Kip, the ________ effect must outweigh the ________ effect.
A. substitution; income
B. income; utility
C. income; substitution
D. utility; substitution
Answer: C
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What would be an example of a government good?
A) Antonio, the manager of the local Taco Hut, purchases a new deep fryer. B) Rhianna gets a haircut. C) Jake buys an iPhone. D) Donald Trump purchases furniture for his office. E) The local driver's license office purchases a new digital camera and printer.
The above table describes the accounts for the country of Pacifica. Using this information, net exports for Pacifica equals
A) $100. B) $900. C) -$100. D) $650.
When a firm prices its goods below the marginal cost to drive away competitors, it is referred as
A) price skimming. B) limit pricing. C) penetration pricing. D) predatory pricing.
An investor who owns preferred stock has
A) regular voting rights. B) preferential treatment in the payment of dividends. C) the same rights as a bond holder. D) unlimited liability for the debts of the firm.