In New York City, when he was the mayor Michael Bloomberg recommend that the city, with the help of private donors, make cash payments to poor and underprivileged parents who can certify that their children are attending school on a regular basis
The payments would start after third grade and go through high school, rising each year as dropout rates get higher and a child's forgone earning potential is higher. What economic concept does this policy represent?
A) public goods
B) incentives
C) externalities
D) technological progress
E) the "invisible hand"
B
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Globalization has given U.S. consumers a wider variety of gourmet food products from which to choose and has lowered the prices of these products in general
This, in turn, has encouraged consumers to buy more gourmet food items, which has ________ the amount of cooperative surplus for the buyers and sellers of gourmet food products. A) increased B) decreased C) not changed D) reduced to zero
There are two firms that compete against each other and each needs to decide if they will undertake research and development to improve their product
The payoffs are as follows: If Firm 1 does undertake R&D then Firm 2 will earn $25 million if they also do R&D or $50 million if not If Firm 1 does not undertake R&D then Firm 2 will earn $2 million if they do R&D or $0 million if not If Firm 2 does undertake R&D then Firm 1 will earn $10 million if they also do R&D or $20 million if not If Firm 2 does not undertake R&D then Firm 1 will earn $2 million if they do R&D or $0 million if not Regarding this game, which of the following is TRUE? A) Only one will do R&D but we cannot say which one. B) Both firms will do R&D. C) Both firms will not do R&D. D) Firm 1 will do R&D and Firm 2 will not.
Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP. B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP. C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP. D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
Suppose group price discrimination is possible but a firm chooses not to and sets the same price in each market. As a result
A) price elasticity of demand is the same in each market. B) the price-inelastic market will buy zero units. C) marginal revenue in the more price-elastic market exceeds marginal revenue in the less price-elastic market. D) the deadweight loss is less than if the firm price discriminated.