Microsoft raises the price of its Office software by 10 percent. As a result, the quantity of personal computers demanded at the current price decreases by 5 percent
What is the cross elasticity of demand for personal computers with respect to the price of Microsoft Office software? A) -2.0
B) -0.5
C) 0.5
D) 2.0
B
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A problem that exists when naturally occurring incentives encourage sufficient numbers of people to act in a way that makes everybody worse off is called a
A) zero-sum problem. B) cause-and-effect problem. C) collective action problem. D) trade-off.
The uncertainty and ambivalence surrounding government policies toward competition stems from
A) conflict between the goals of preserving competition and protecting competitors. B) the influence producers are able to exert on agencies charged with enforcing laws governing business practices. C) uncertainty about the actual effects of various measures intended to promote competition. D) all of the above. E) none of the above but from uncertainty about federal, state, or local jurisdiction.
If a country imposes a tariff on an imported good, the tariff ________ the price in the importing country and ________ the quantity of imports
A) raises; decreases B) raises; increases C) raises; does not change D) lowers; does not change
If the minimum wage is set
A) above the equilibrium wage rate, it will create unemployment. B) equal to the equilibrium wage rate, it will create a shortage of labor. C) below the equilibrium wage rate, it will create unemployment. D) equal to the equilibrium wage rate, it will create a surplus of labor. E) below the equilibrium wage rate, it will create a shortage of labor.