Who is more likely to offer a money-back guarantee: a seller of a lemon or a seller of a plum? Why?
What will be an ideal response?
The seller of a plum is more likely to offer a money-back guarantee, because that seller is unlikely to have to honor the guarantee. A seller of a lemon knows that there is a good chance that the buyer will return the car and ask for his or her money back.
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A firm's demand for labor curve is the same as the firm's
A) marginal product curve. B) marginal cost curve. C) marginal revenue curve. D) value of marginal product curve.
The marginal product of labor (MPL) can be calculated from the following ________
A) the labor share of income and the average output per unit of labor B) the labor share of income and average labor per worker C) output and labor D) the labor share of income and output E) none of the above
An increase in each of the following factors would normally provide a subsequent increase in quantity demanded, except:
a. price of substitute goods b. level of competitor advertising c. consumer income level d. consumer desires for goods and services e. a and b
Assume that there is a proposed tax cut by the U.S. House of Representatives. A problem is
a. how to distribute the benefits of the total tax cut among different groups within the country. b. that the process occurs very quickly without much time to study any negative effects. c. that tax cuts are harder to implement than tax increases. d. that the Federal Reserve has almost invariably been in favor of moderate tax increases rather than tax cuts. e. this statement is wrong, as tax bills originate in the U.S. Senate.