Suppose people believe that prices will continue to fall in the future, and so they put off buying things now. As a result, prices fall. In economics we refer to this as a(n):
A. precommitment strategy.
B. self-confirming equilibrium.
C. Nash equilibrium.
D. endowment effect.
Answer: B
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You own an ice cream store and are concerned that an employee may be giving generous scoops to friends and relatives and smaller scoops to some other customers. This may be reducing sales. If you want your employee to stop giving larger scoops to friends and relatives, which of the following is not a good approach?
a. Make visits to the store at the same time each day. b. Pay employees an above equilibrium wage. c. Give your employees a monthly bonus based on profits. d. None of the above are good approaches.
Public investment in crop breeding has tended to emphasize longer term research while investment by the private sector has emphasized:
a. Investment in animal agriculture b. Investment to encourage small scale production c. Investment in cultivar development with short term payoffs d. All of the above
In long-run equilibrium for the monopolistically competitive firm, the equilibrium point
a. at the highest part
b. close to the highest part
c. at the lowest part
d. close to the lowest part
Of the following high-income countries, which has the lowest mortality ratio for cancer?
A) Canada B) Japan C) the United Kingdom D) the United States