In building economic models, economists often omit
a. assumptions.
b. theories.
c. details.
d. equations.
c
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Surveys show that a small increase in the price of organic potatoes will cause most people to switch to other alternatives such as packaged mashed potatoes. This finding suggests that the demand curve for organic potatoes is
a. relatively steep. b. relatively flat. c. upward sloping. d. vertical.
We Deliver for You is a local company that has several couriers who pick up small packages from local offices and hand deliver them to other local office buildings in same day. The managers of We Deliver for You want the couriers to make as many prompt and speedy deliveries a day as possible, and to incentivize the couriers, the managers do not pay the couriers a salary, rather a flat fee per
delivery. This payment policy will incentivize the couriers to do all of the following except which one? A) minimize their daily number of deliveries B) arrive to pick up packages promptly C) drive fast and take driving risks D) make prompt deliveries
To cause the interest rate to fall, the Fed can
a. decrease the money supply b. stabilize the money supply to increase investor confidence c. decrease the price of bonds d. increase the money supply e. increase the demand for money
Which of the following is the primary source of high earnings in a market economy?
What will be an ideal response?