A. firms are worried that frequent price changes would annoy consumers. B. most firms have agreements with each other to fix prices at profit-maximizing levels. C. government controls most prices. D. foreign competition discourages domestic firms
from price changes.
A. Government regulations limit the number of times a firm can change prices in a year.
B. In most industries the profit-maximizing price does not change even when demand
changes.
C. Production costs do not tend to change when a firm varies its level of output.
D. Firms may be reluctant to change prices for fear of setting off a price war or losing
customers to rivals.
Answer: D
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A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Refer to Table 18-1. Suppose a series of votes are taken in which each pair of alternatives is considered in turn. If the vote is between allocating funds to education subsidies and increased border security
A) Jasmine and Ivy vote for increased border security, Rose votes for education subsidies, and increased border security wins. B) Ivy and Jasmine vote for education subsidies, Rose votes for increased border security, and education subsidies wins. C) Jasmine and Rose vote for education subsidies, Rose votes for increased border security, and education subsidies wins. D) Ivy and Rose vote for increased border security, Jasmine votes for education subsidies, and increased border security wins.
When a transfer price is set higher
a. the buying division will want to sell less to the selling division b. the buying division will want to sell more to the selling division c. the selling division will want to sell less to the buying division d. the selling division will want to sell more to the buying division
A macroeconomic surplus occurs when consumers reduce their consumption expenditures and increase their saving
a. True b. False Indicate whether the statement is true or false