Which of the following is correct?
a. People whose nominal incomes rise faster than the rate of inflation gain purchasing power.
b. Real income equals nominal income divided by the CPI as a decimal.
c. The percentage change in real income equals the percentage change in nominal income minus the percentage change in CPI.
d. All of these.
d
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If Jet Cruises chooses to No Ad, Easy Sail should ________ and earn ________ million in net profit.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) Ad; $4 B) No Ad; $10 C) No Ad; $2 D) Ad; $10
Under representative democracy,
a. the median voter's preferences are always satisfied b. citizens no longer have any influence since they do not vote on each issue c. representatives may reflect the preferences of the median voter d. less vote trading will occur than under direct voting e. vote trading is impossible
The law of demand is graphically demonstrated by a(n):
a. perfectly vertical demand curve. b. perfectly horizontal demand curve. c. downward-sloping demand curve. d. upward-sloping demand curve. e. curved demand line.
Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Because the restaurant industry is considered monopolistic competition, it is expected that in the long run, restaurant franchise owners earn:
A. zero economic profits. B. positive economic profits. C. zero accounting profits. D. negative accounting profits.