The price of one good produced by a multiproduct industry rises. The effect on a second good produced by that industry will be
A. a shift left in the supply curve for the second good.
B. no change in the supply curve for the second good.
C. a shift right of the supply curve for the second good.
D. a shift right of the demand curve for the second good.
Answer: A
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Economic theory predicts
A) balanced budgets are impossible to achieve through a democratic political process. B) budget surpluses are impossible to achieve through a democratic political process. C) budget deficits are likely to occur through a democratic political process. D) the absolute size of the budget will be systematically reduced in the long run through democratic political processes.
Explain why the "kinked demand curve" model of oligopoly represents a game theory approach to oligopolistic behavior
What will be an ideal response?
Cruise liners offer last minute deals because
a. The marginal cost is higher than the marginal revenue since fixed costs are sunk b. The marginal costs of an additional passenger are very low at that point and companies gain by lowering prices c. The average cost of an additional passenger is very low at that point and companies gain by lowering prices d. All of the above
Which of the following functions of government gives property owners the incentive to use their property efficiently?
A) making sure that courts are lenient on people who steal private property B) the protection of property rights C) the enforcement of antitrust legislation D) the financing of public goods