The study of an individual's choice about what type of computer to buy is a subject of
A) macroeconomics.
B) microeconomics.
C) an aggregate concept.
D) not a concern for economic analysis.
B
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A profit center is
a. evaluated based on minimizing costs within the division b. evaluated based on maximizing costs within the division c. evaluated based on minimizing profits generated by the division d. evaluated based on maximizing profits generated by the division
If a good is inferior, then the income elasticity of demand for that good is
a. positive and greater than 1 b. negative c. positive and less than 1 d. 0 e. perfectly elastic
The informativeness principle tells us that:
A. one must only use information that is necessary to develop compensation contracts, as long as the cost of obtaining the information is reasonable. B. one must use as much information as possible to develop compensation contracts, even if the cost of obtaining the information is unreasonable. C. information is overrated because employees can always lie about their performance, and detecting is costly and counter-productive. D. you must use as much information as possible to develop compensation contracts, as long as the cost of obtaining the information is reasonable.
Suppose that the percentage change in supply is 50%, the price elasticity of demand is 4, and the price elasticity of supply is 1. The equilibrium price will:
A. decrease by 10 percent. B. increase by 55 percent. C. increase by 10 percent. D. decrease by 55 percent.