Firm's should raise the price of their goods
a. If the demand for the product is elastic
b. If it acquires a firm selling a complement good
c. If it acquires a firm selling a substitute good
d. Both a and c
c
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When the labor market is in equilibrium,
A) there is full employment, which means that real GDP equals potential GDP. B) there is full employment but real GDP might be greater than, less than, or equal to potential GDP. C) the real wage rate rises to allow real GDP to equal potential GDP. D) there is excess labor supplied, which keeps real GDP less than potential GDP. E) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
A person starts practicing poisonous snake charming after signing a contract with a health insurance company. This is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.
In a graphic relationship, shifts in a curve are caused by a change in:
a. the slope of the curve. b. a factor not measured on the axes of the graph. c. one of the factors measured on either axes of the graph. d. any factor, whether measured on the axes of the graph of not.
Consumer surplus is
a. the difference between the price of the good and the cost to produce the good. b, the sum of what consumers are willing to pay and the price of the good. c. the difference between what consumers are willing to pay and the price of the good. d. the difference between the cost to produce the good and the amount consumers are willing to pay for the good.