When the bandwagon effect exists, a change in price is likely to
A) change total revenue less than if there were no network externalities.
B) change total revenue more than if there were no network externalities.
C) change total revenue the same amount as if there were no network externalities.
D) not change total revenue at all.
B
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Economic growth in Cuba has been slow. What can best explain the slow growth?
A) lack of incentive mechanisms and economic freedom B) lack of economic resources C) labor productivity is low. D) too much competition within the economy E) a non-democratic form of government
In the used car market, adverse selection can be limited by
A) offering warranties. B) establishing loan limits. C) requiring high deductibles. D) requiring low deductibles.
________ imposes a conceptual structure and inherent discipline on policy makers, but without eliminating all flexibility
A) Constrained discretion B) A policy rule C) A discretionary policy D) The Taylor rule
David sells Sno-cones and uses the money earned to buy pizzas. Last year Sno-cones sold for $1 each, and pizzas were $10 each. This year David finds that he can only charge $0.50 per Sno-cone, but that the price of a pizza has climbed to $12. a . If
David asks the government to intervene to maintain his purchasing power, what price would the government have to set for Sno-cones? Explain. b. How would the new, government-imposed Sno-cone price affect the Sno-cone market?