If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:
A. perfect competitor.
B. monopolist.
C. price taker.
D. profit maximizer.
Answer: B
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Investors are often willing to take the risks associated with investing in capital goods in developing nations because developing nations
A) insure a small return on investment. B) always insure the investments. C) have a large portion of the world's unutilized or underutilized resources and hence profit potential. D) get the International Monetary Fund (IMF) to back investments through a series of loan guarantees.
An efficiency wage is ________ and results in ________
A) equal to the equilibrium wage; full employment B) above the equilibrium wage; a surplus of labor C) below the equilibrium wage; a shortage of labor D) above or below the equilibrium wage; a surplus or shortage of labor
After getting a raise at work, Jasper now regularly buys steak instead of chicken. Which factor of demand has influenced Jasper's demand for steak?
A. Price of a substitute good B. Price of a complementary good C. Income D. Preferences
Normal goods always obey the law of demand because, as the price of such a good rises, the
a. fall in quantity demanded due to the substitution effect is offset by a rise in quantity demanded due to the income effect b. fall in quantity demanded due to the substitution effect is reinforced by a fall in quantity demanded due to the income effect c. substitution effect will lead to an inward shift of the demand curve d. substitution effect will lead to an increase in quantity demanded e. rise in quantity demanded due to the substitution effect is offset by a fall in quantity demanded due to the income effect