If a consumer is given a $10 gift certificate good for items in store X, and all items in store X are inferior goods, then the consumer desires to consume:
A. fewer goods in store X.
B. the same amount of goods in store X.
C. more goods in store X.
D. None of the statements is correct.
Answer: A
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Straight Cut beauty salon merges with Clean-Cut beauty salon. This is an example of
A) conglomerate merger. B) concentration ratio. C) vertical merger. D) horizontal merger.
A temporary price differential in resource markets is
a. eliminated by resource movements b. caused by a failure of firms to maximize profits c. eliminated by resources moving from highly-valued uses to lower-valued uses d. caused by Congress increasing the federal minimum wage e. a result of firms using the MRP = MRC rule in hiring resources
Suppose there is a 5 percent increase in the nominal wages of workers in an economy. The annual rate of inflation in the economy is about 2 percent. Which of the following is true in this case? a. Real wage would fall by about 10 percent
b. Real wage would increase by about 20 percent. c. Real wage would fall by about 25 percent. d. Real wage would increase by about 50 percent. e. Real wage would increase by about 3 percent.
The distinction between M1 and M2 is based on
a. portability-the ease with which an asset can be moved. b. divisibility-the ease with which an asset can be used to make smaller payments. c. liquidity-the ease with which an asset can be converted into cash. d. storability-how long an asset will retain its value.