Demand is best defined as the:
A) amount of a commodity that buyers would be willing and able to purchase at a specific price.
B) price that buyers would be willing and able to pay for a specific quantity of a good.
C) relationship between the price of a good and the quantity people are able to purchase, all other things unchanged.
D) relationship between the price of a good and the quantity people are willing and able to purchase, all other things unchanged.
Ans: D) relationship between the price of a good and the quantity people are willing and able to purchase, all other things unchanged.
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The simpler a production process is,
a. the greater the cost of production b. the greater the transaction cost of using markets c. the more likely a firm will use the market to organize production d. the more likely a firm will used centralized control to organize production e. the more likely that transaction costs increase by using centralized control of production
The demand curve for Apple iTune music downloads is unstable because
a. consumers of music downloads are irrational b. Apple‘s production costs are unstable c. it is unclear how Amazon, its primary competitor, will react to Apple's pricing strategy d. the market for music downloads is unpredictable e. consumers of music downloads have the option to download music for free
Why might special interest groups be more likely to push for transfers instead of economic growth? The answer is because it usually takes a much __________________ percentage _______________ in growth to equal what they can get from the transfer
A) smaller; decrease B) larger; increase C) larger; decrease D) smaller; increase E) none of the above
According to the Coase Theorem, externality problems:
A. Do not exist in reality, because all costs and benefits are internal to firms B. Can be solved through private negotiations without the need for government intervention C. Must only be resolved by government action, through either taxes or subsidies D. Can never be resolved adequately because one party always gains while the other loses