Which of the following would be included in the Consumer Price Index but not in the GDP Price Index?
a. The price of a used automobile
b. The price of a dinner in a U.S. restaurant
c. The price of a U.S.-manufactured stereo system
d. The price of an IBM computer
e. The price of a new Ford automobile
A
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A monopolist will spend resources to advertise its product so long as
A) net profits increase. B) gross profits increase. C) demand increases. D) total revenue increases.
The five forces model is a framework
a. For increasing buyer force in the market b. For improving competition in the industry c. For analyzing the attractiveness of an industry d. Of matching resources and capabilities of the firm
If the price of an input falls, a firm would increase the use of that input for two reasons:
a. the input is now more productive, and the firm can substitute this input for other relatively more expensive inputs. b. the input is now more productive, and overall production costs are now lower, meaning a firm may choose to increase production. c. overall production costs are now lower and the firm can substitute this input for other relatively more expensive inputs. d. overall production costs are now lower and the firm will have more of other inputs to use with the one in question.
In response to the threat of budget cuts, the Connecticut State Department of Recreation proposed shutting down many state parks and beaches. This is a good example of
a. cost efficiency in bureaus b. Niskanen's theory of budget-maximizing bureaus c. the median-voter model d. logrolling e. direct democracy