Does a firm's decision to spend money on celebrity endorsers signal the quality of their product?
A. Yes, firms who know that they have less appealing product would not spend lots of money on advertising, because they know they won't get their investment back.
B. Yes, firms who know that they have less appealing product will spend lots of money on advertising, because they know they hope to get their investment back.
C. Yes, firms who know that they have a more appealing product would not spend lots of money on advertising, because they know they know they will sell the product anyway.
D. Yes, firms who know that they have more appealing product would spend spend lots of money on advertising, even though they know they won't get their investment back.
Answer: A
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Which statement is true?
A. Entrepreneurial ability is in short supply in the U.S. B. Land, labor and capital may be considered passive resources. C. The concept of opportunity cost is irrelevant when there is scarcity. D. None of these statements are true.
Contingency fees
a. are illegal in many countries. b. are calculated as a percentage of the total damage award. c. are similar to punitive damages. d. according to some reformers, should be increased to discourage further lawsuits. b. both a and b.
If a firm is experiencing diminishing marginal returns, its marginal product is negative
a. True b. False
If productivity growth in Japan exceeds productivity growth in the U.S., to the point that the resource cost in ALL Japanese industries is lower than in the U.S., then
A. there is no feasible way for the U.S. and Japan to continue to trade. B. mutually beneficial trade is possible. C. trade between the U.S. and Japan is possible, but only Japan will benefit from it. D. trade between the U.S. and Japan is possible, but only the U.S. will benefit from it.