If products C and D are close substitutes, an increase in the price of C will:
A. tend to cause the price of D to fall.
B. shift the demand curve of C to the left and the demand curve of D to the right.
C. shift the demand curve of D to the right.
D. shift the demand curves of both products to the right.
Answer: C
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A professional basketball franchise is trying to assemble a parcel of land to build an arena. There are 25 houses on the land the franchise needs. In this case,
A) eminent domain can reduce transactions costs and make a pie-increasing arena possible. B) eminent domain can reduce the likelihood of holdouts and make a pie-increasing arena possible. C) eminent domain is not called for as the land can probably be acquired more efficiently through bargaining. D) Both A and B are correct.
Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires
A) lower; more B) higher; more C) lower; fewer D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.
What is a private cost of production? What is a social cost of production? When is the private cost of production equal to the social cost of production?
What will be an ideal response?
The number of presidentially appointed members who sit on the Federal Reserve Board of Governors is:
A. none. B. seven. C. nine. D. twelve.