Persuasive advertising influences demand by:
A. altering the underlying tastes of consumers.
B. providing information about the availability of a product.
C. offering reduced prices for the product.
D. none of the statements are correct.
Answer: A
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How do countries know when they have a comparative advantage in the production of a good?
A) Government accountants collect cost data from countries and analyze it to find out which country has a comparative advantage in the production of which good. B) They know as the result of individuals trying to earn profits and buying low and selling high in the process. C) The United Nations Economic Conference Group analyzes cost data from countries and determines which country has a comparative advantage in the production of which good. D) There is not one major way that countries acquire this information.
Why is a monopolist's marginal revenue less than the price?
What will be an ideal response?
The idea that a dollar in the hand of a rich person is worth less than a dollar in the hand of a poor person is a consequence of ________ justice.
A. Rawlsian B. absolute C. social D. utilitarian
When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is less than the marginal benefit consumers receive from them. B) is equal to the marginal benefit consumers receive from them. C) is greater than the marginal benefit consumers receive from them. D) is zero due to the insurance payments.