A horizontal merger between two firms occurs when
a. the goods produced by the merging firms are not related
b. one firm produces goods while the other produces services
c. one firm is a domestic firm and the other is a foreign firm
d. the firms were in a buyer-seller relationship before the merger
e. the merging firms produce identical or close substitute goods
E
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A consumer has $100 to be spent on tables and chairs. If his income increases to $200, the prices of the goods remaining unchanged, his budget constraint:
A) pivots to the left along the vertical axis. B) pivots to the right along the horizontal axis. C) shifts to the left. D) shifts to the right.
Contractionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve
A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement up along D) upward shift of; shift to the left of
The Laffer Curve demonstrates that _____
a. at some level of tax rates, tax revenues decline b. there is no relationship between tax rates and tax revenue c. there is no relationship between tax rates and labor supply d. at some level of tax rates, labor supply declines
If bundles of goods A and B lie on the same indifference curve, one can assume the individual:
a. prefers bundle A to bundle B. b. prefers bundle B to bundle A. c. enjoys bundle A and B equally. d. bundle A contains the same goods as bundle B.