With respect to the market clearing price and the equilibrium quantity of good B, increases in the demand for and the supply of good B will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of B.
B) reduce the market clearing price and the equilibrium quantity of good B.
C) increase the market clearing price and the equilibrium quantity of good B.
D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of B.
Answer: D
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All of the following can cause conflict between divisions EXCEPT
a. Coordination between divisions does not benefit all divisions equally b. managers of profit centers care too little about the effects of their decisions on other divisions c. corporate executives reward managers based on firm profitability instead of divisional profitability d. corporate executives cannot tell when one divisional manager's decisions are appropriate or not
Show how a monopolist maximizes its profit. Explain your graph.
What will be an ideal response?
The foundational principle that makes insurance companies work is called:
A. risk assignment. B. risk analysis. C. catastrophic causation. D. risk pooling.
Which statement best describes a capitalist economy?
A. Government policies determine the production and the allocation of goods and services. B. The role of individual self-interest is relatively unimportant because government makes most economic decisions. C. Government policies determine the production, but not the allocation, of goods and services. D. Society determines production and the allocation of goods and services only through markets.