Which of the following statements about a market for used cars is INCORRECT?
A. The presence of low-quality cars decreases consumers' willingness to pay.
B. An increase in price increases the quantity of high-quality cars supplied.
C. An increase in price decreases the quantity of low-quality cars supplied.
D. The decrease in the quantity of high-quality cars lowers consumers' willingness to pay.
Answer: C
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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for:
A. more than 75 cents because CheapFizz is the only company that can sell soda on campus. B. 75 cents because that is the market price. C. less than 75 cents because CheapFizz will have greater volume and so can lower its price. D. more than 75 cents because the demand curve for CheapFizz soda will shift to the left.
All of the following are true regarding the Foreign Corrupt Practices Act (FCPA) except which one?
A) Nearly all aspects of the FCPA are harsher than the U.K. Bribery Act. B) The FCPA applies to any company that is organized under the laws of the United States. C) The FCPA applies to any company whose stock is publically traded in the United States. D) It is a United States anti-corruption law prohibiting bribery of foreign officials.
John Maynard Keynes argued that
A. Macro failure is likely to occur but will go away quickly. B. Macro failure is likely to occur, and it isn't likely to go away quickly. C. Macro failure is unlikely to occur. D. None of the choices are correct.
Human capital is
A) what people get from physical capital. B) the accumulation of skills, training and education of workers. C) the value of funds that entrepreneurs obtained from other people. D) the human resources that perform the function of raising capital.