When demand is elastic
A. changes in price and changes in total revenue move in opposite directions.
B. for any change in price, total revenue will not change.
C. changes in price and changes in total revenue move in the same direction.
D. there is no relationship between changes in price and changes in total revenue.
Answer: A
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When the Glass-Steagall Act was repealed in 1999, potential conflicts of interest arose with
A) the development of universal banking. B) the introduction of more credit-rating agencies. C) accounting firms developing more comprehensive services. D) investment analysis in investment banking.
Which of the following is characteristic of a perfectly competitive market?
a. There is free entry into and exit from the market. b. Individual firms can exert a perceptible influence on the market price. c. The firms in the market produce differentiated products. d. All of these are true.
John is buying a scented candle for his girlfriend. John thinks about her flower-scented perfume, flower-scented air spray, and flower-scented shampoo. He decides to buy her a flower-scented candle. His behavior is:
A. using a heuristic called a rule of thumb. B. an example of the endowment effect because she already has flower-scented goods. C. an example of loss aversion because he doesn't want to make the wrong choice. D. an example of status quo bias because he doesn't want to deviate from her normal choice of scent.
The expression, "There's no such thing as a free lunch," implies that
What will be an ideal response?