Which of the following statements about featherbedding is correct?
A. It could increase production costs, resulting in higher prices for products.
B. The quantity of labor demanded by firms could actually decrease.
C. It could lead to a lower wage and smaller employment in the long run.
D. All of these
Answer: D
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The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?
A) an announcement made by either firm regarding their future plans B) unpredictable strategies C) a focal point D) the Pareto criterion
The formula for the standard error of the regression coefficient, when moving from one explanatory variable to two explanatory variables,
A) stays the same. B) changes, unless the second explanatory variable is a binary variable. C) changes. D) changes, unless you test for a null hypothesis that the addition regression coefficient is zero.
If Andre Preneur puts together a company that yields a profit of $40,000 per year and this profit stream is expected to continue indefinitely, what price can he sell the company for if the discount rate equals 8 percent?
a. $40,000 b. $60,000 c. $100,000 d. $250,000 e. $500,000
If consumer purchases of a good are highly sensitive to the price of the good, economists say the demand for the good is relatively
a. inelastic. b. elastic. c. robust. d. inverse.