Why is it rational for a consumer to begin buying a second type of good after buying a certain amount of the first type of good?
a. The price of the first type of good will continue to increase with each successive purchase.
b. The total satisfaction gained from the first type of good will continue to decline with each successive purchase.
c. The marginal satisfaction gained from the first type of good will continue to decline with each successive purchase.
d. The price of the second type of good will continue to decrease with each successive purchase.
c. The marginal satisfaction gained from the first type of good will continue to decline with each successive purchase.
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Adkins Air is the only seller offering service directly from Milwaukee to Greensboro. The market is contestable. Thus the Nash Equilibrium for a game between Adkins Air and a potential entrant is when the potential entrant
A) enters and Adkins earns a normal profit. B) enters and Adkins earns an economic profit. C) does not enter and Adkins earns a normal profit. D) does not enter and Adkins earns an economic profit.
Final offer arbitration
A. is particularly useful at brining both sides closer to common ground. B. provides an incentive for the union, but not the firm's management, to make a more reasonable final offer. C. rarely makes the entire bargaining process more efficient. D. provides an incentive for the firm's management, but not the union, to make a more reasonable final offer. E. would never be chosen by a public sector union if the state did not require it.
Refer to the figure below, which shows four different Lorenz curves (I, II, III, and IV). What point indicates that the lower 60 percent of the households receive only 40 percent of the nation's total income?
A. a
B. b
C. c
D. d
If monetary policy must be used to set the market equilibrium value of the exchange rate equal to the official value, it:
A. is no longer available to stabilize the domestic economy. B. will be unable to stabilize the market equilibrium value of the exchange rate. C. will increase the rate of growth in the economy. D. will simultaneously stabilize the domestic economy.