Suppose Microsoft announces it is cutting the prices of some of its software titles (mainly games) by 25 percent. Assuming that Microsoft is seeking to increase revenues, it must believe that the elasticity of demand for these products is
a. elastic.
b. inelastic.
c. of unitary elasticity.
d. perfectly inelastic.
A
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Supply-siders are generally critical of government intervention and regulation, since they believe regulations can be costly impediments to economic growth
a. True b. False Indicate whether the statement is true or false
One defense Microsoft can use to argue that it does not have monopoly power in the market for operating systems, is to show that
a. demand for operating systems is highly elastic. b. many other commodities have higher income elasticities of demand than operating systems. c. the cross elasticity of demand between Microsoft’s operating system and other operating systems is large and positive. d. many of its competitors' products are complements for its service.
Moving along the aggregate production function shows the relationship between ________, holding all else constant
A) capital input and real GDP B) labor input and real GDP C) labor input, capital input and real GDP D) technology and real GDP
Which of the following statements regarding human capital is INCORRECT?
A) Human capital is the accumulated skill and knowledge of human beings. B) Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned. C) The accumulation of human capital is the source of both increased productivity and technological advance. D) Writing and mathematics, the most basic of human skills, are crucial elements in economic progress.