In the above figure, the firm will shut down if price falls below
A) F.
B) I.
C) H.
D) E.
D
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Based on the example provided by the authors, what is the key factor that explains much of the growing inequality in wages paid to different types of workers in the U.S. since 1980?
A) Changes in the gender composition of the work force B) Changes in the age distribution of the work force C) Differences in computer and data analysis skills D) Changes in the geographic concentration of workers
Double markup problems arise when
a. upstream firms have market power b. downstream firms have no market power c. upstream and downstream products are unrelated in demand d. upstream and downstream firm's pricing decisions tend to increase the demand for the other product
One way for a bank to deal with credit risk is to:
A. increase the number of loans made in any year. B. add a mark-up for a specific borrower based on the borrower's credit history to the cost of funds. C. charge all borrowers from the same industry an average rate for that industry. D. avoid making loans to borrowers from a broad spectrum and to specialize geographically and in specific industries.
To decrease output the government could
A. increase government spending and encourage immigration. B. decrease government spending and discourage immigration. C. increase government spending and discourage technological advancement. D. decrease government spending and encourage technological advancement.