The price effect of a price decrease by a monopolist refers to:
A) the loss in revenue due to the price reduction.
B) the increase in sales due to the price reduction.
C) the increase in revenue because of an increase in sales.
D) the decrease in the demand for labor due to the lower price of the final product.
A
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Possible solutions to omitted variable bias, when the omitted variable is not observed, include the following with the exception of
A) panel data estimation. B) nonlinear least squares estimation. C) use of instrumental variables regressions. D) use of randomized controlled experiments.
When the price of hot dogs at the supermarket increases, the quantity demanded of hot dog buns declines. This situation describes:
a. the income elasticity of demand for hot dogs. b. the income elasticity of demand for hot dog buns. c. the price elasticity of supply for hot dogs. d. the negative cross-price elasticity of demand for hot dogs and hot dog buns. e. the positive cross-price elasticity of supply for hot dogs and hot dog buns.
The magnitude of intangible losses can sometimes be estimated by investigating the average
A. annual costs borne by victims of white-collar crimes, such as embezzlement. B. annual incomes of police detectives and private investigators. C. dollar amounts paid by insurance companies as reimbursement for property losses. D. dollar amounts individuals willingly pay to reduce their chance of being a victim.
All of the following push a country inside its production possibilities curve except
A. A sudden burst of inflation that has not been anticipated. B. The withholding of resources from the production process because of speculation. C. A sudden burst of deflation that has not been anticipated. D. An increase in labor force participation.