The introduction in 1968 of the "Big Mac" was a hit product for McDonald's. This example shows that in the market for such fast-food products:
A. normal profits are greater than economic profits.
B. the dollar votes of consumers determined which products succeed.
C. the medium of exchange is more important than the message.
D. consumer sovereignty is less important than specialization.
Answer: B
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Which of the following is true of a prisoners' dilemma game?
A) A prisoners' dilemma game has multiple Nash equilibria. B) There is no dominant strategy equilibrium in a prisoners' dilemma game. C) The dominant strategy equilibrium in a prisoners' dilemma game is also the Nash equilibrium. D) The prisoners' dilemma game is an extensive-form game.
Managers can increase firm profits by:
A) increasing revenue only. B) decreasing costs only. C) increasing revenue and decreasing costs. D) none of the above.
When the government sets a price floor which is below the equilibrium price
A. the equilibrium price will be maintained. B. a surplus will develop. C. a price ceiling will follow. D. a shortage will develop.
The economy's aggregate supply curve reflects
A) A normal range. B) A Keynesian or depression range. C) A classical range. D) All of the above.