According to the permanent income hypothesis, which of the following should raise current consumption the most?
a) a lottery prize of $1,000
b) an unexpected year-end bonus of $1,000
c) a temporary tax cut of $1,000
d) an increase of $1,000 in annual salary
e) an inheritance of $1,000
d) an increase of $1,000 in annual salary
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Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market
A) the supply curve will shift to the left and the equilibrium price will increase. B) the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease. C) the demand curve will shift to the left and the equilibrium price will decrease. D) the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
If Happy Feet chooses to No Ad, Best Nails should ________ and earn ________ million in net profit.
Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $2 B) No Ad; $3 C) No Ad; $4 D) Ad; $3
Holders of shares of common stock in a corporation have a “prior claim” over the company’s earnings or its assets.
Answer the following statement true (T) or false (F)
Rivalry means that when one person buys and consumes a product, it is not available for purchase and consumption by another person.
Answer the following statement true (T) or false (F)