Although tariff and quota protections for China auto imports were very costly to consumers, which of the following was a benefit?
a. Auto prices, compared with other prices in the economy, actually fell.
b. Auto consumption skyrocketed, but there were environmental effects.
c. Firms that were involved in joint ventures were able to "learn" and to significantly lower their costs.
d. China's government realized it had to keep its hands off entrepreneurial concerns.
Ans: c. Firms that were involved in joint ventures were able to "learn" and to significantly lower their costs.
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The financial system
a. involves bank accounts, mortgages, stock prices, and many other items. b. involves decisions and actions undertaken by people at a point in time that affect their lives in the future. c. coordinates the economy's saving and investment. d. All of the above are correct.
In the graph for the relationship between elasticity of the demand and total revenue, we can see that at five units, ______.
a. total revenue is rising and marginal revenue is profitable
b. total revenue is rising and marginal revenue is unprofitable
c. total revenue is maximized and marginal revenue is zero
d. total revenue is minimized and marginal revenue is equal to price
Which of the following is true of The Invisible Hand Theorem?
A. There can be no taxes of any kind. B. The slope of the production possibilities curve is not affected by movements along the production contract curve. C. Monopoly pricing will not distort efficiency as long as consumers are willing to pay the prices of the monopolists. D. Any position on the consumer contract curve can be efficient.
The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $5 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive compatible between consumer types and will maximize its profit, then it should:Consumer TypesPower PointExcelWordAccountants$75$100$150Marketing/Sales$125$80$135Administrative Assistants$50$175$75
A. charge a single price of $300 for the bundle of PowerPoint, Excel, and Word. B. charge $125 for PowerPoint, $175 for Excel, and $150 for Word. C. charge $325 for the bundle of PowerPoint, Excel, and Word and permit consumers to purchase each software title individually at $81.10 each. D. charge $50 for PowerPoint, $80 for Excel, and $75 for Word.