The manager of Steel Works learns of a new technological interdependency between the intermediate stage and the final stage of production. If Steel Works currently contracts with another firm for the final stage of production, which of the following is true?
A) The manager has less of an incentive to integrate forward.
B) The manager has less of an incentive to integrate backward.
C) The manager has more of an incentive to integrate backward.
D) The manager has more of an incentive to integrate forward.
D) The manager has more of an incentive to integrate forward.
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Figure 4.3 illustrates the demand for tacos. Assume that tacos and beer are complements. An increase in the price of beer would bring about a movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D2.
Products are homogenous when:
A. they are identical in the eyes of the purchasers B. some purchasers view the products as different C. suppliers can charge different prices for the same good D. they meet basic safety standards.
Economists assume that, in general, when individuals are faced with two choices that have the same expected value, they will prefer:
A. the one with lower risk. B. the one with higher risk. C. the one with the higher opportunity cost. D. the one with the lower future value.
In calculating the unemployment rate, part-time workers are:
A. Counted as unemployed because they are not working full-time B. Counted as employed because they are receiving payment for work C. Used to determine the size of the labor force, but not the unemployment rate D. Treated the same as "discouraged" workers who are not actively seeking employment