Which of the following statements is false?
A. While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager's control.
B. Output prices influence a firm's revenues.
C. Input prices influence a firm's costs of production.
D. Price determination is the key element in any market system.
A. While managers must understand how output prices are determined, determination of input prices is irrelevant because it is beyond the manager’s control
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A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in
A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease. D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.
The marginal cost of medical care to the patient is zero under:
A. government-sponsored health care coverage. B. an HMO. C. first-dollar health insurance coverage. D. no circumstances.
An increase in the price of product B resulted in an increase in the demand for product C. This indicates that products B and C are:
a. Normal goods b. Complementary goods c. Inferior goods d. Substitute goods
Inflation expectations in the United States generally
A. rose from 1971 to 1987, then fell from 1987 to 2006. B. rose from 1971 to 1982, then fell from 1982 to 2000, and have been stable since then. C. fell from 1971 to 1985, then rose from 1985 to 2000, and have been stable since then. D. fell from 1971 to 1976, rose from 1977 to 1985, then fell from 1985 to 1995, and have been stable since then.