If people buy more of a generic brand when consumer income falls, it is an inferior good
a. True
b. False
Indicate whether the statement is true or false
True
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If in monopolistic competition in the short run, firms make ________ profits, then in the long run, new firms will enter the market. The ________ each individual firm's product will ________
In the new long-run equilibrium firms will make ________ profit. A) economic; demand for; decrease; zero economic B) normal; demand for; increase; zero economic C) economic; supply of; decrease; an economic D) economic; supply of; increase; zero economic
Susan Chen is a stock analyst. She values two goods: money (income) and her integrity. Her bonus is based on the number of investments she recommends to the company. Generally speaking, the higher the bonus she receives,
A. the smaller is the shift in her budget line. B. the more she is willing to trade off her integrity for money. C. the less she is willing to trade off her integrity for money. D. the more she is indifferent to changes in the level of bonus.
In the 1990s, business organizations were
A) flattened. B) turned inside out. C) formed into horizontal structures. D) all of these choices.
Which of the following factors would be most likely to encourage capital formation in a less-developed nation?
a. high and variable rates of inflation b. tariffs and quotas that restrict international trade c. a legal system that provides for secure property rights and even-handed enforcement of contracts d. high marginal tax rates