The demand for factors of production is referred to as:
A. primary demand.
B. derived demand.
C. implied demand.
D. production demand.
B. derived demand.
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If Big Box Store has customers with identical demands, if it practices two-part pricing, the profit-maximizing access fee is ________ the consumer surplus.
A) less than B) greater than C) exactly double D) equal to
According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
a. decreasing returns and declining average and marginal costs b. increasing returns and declining average and marginal costs c. increasing returns and increasing average and marginal costs d. decreasing returns and increasing average and marginal costs e. none of the above
A strike
A. hurts the firm's management and shareholders but not the union members. B. is always in the firm's best interest. C. is never in the best interest of the rank and file. D. can be a rational response during the union-firm negotiation process. E. is a Pareto optimal outcome.
In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP. B) The Fed fears that unemployment is climbing above the natural rate. C) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP. D) The Fed is worried that deflation will become a problem.