If the United States' largest bakery buys an agricultural firm that specializes in growing wheat, we would have an example of
A) a horizontal merger.
B) a vertical merger.
C) a monopoly.
D) excessive product differentiation.
B
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The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?
A) No, the recession will have no impact on my ability to get a job or my future income. B) Yes, the recession will lower income in my field permanently. C) No, the recession will most likely be short-lived and I can get a job after it is over. D) Yes, the recession will ensure that you will never find a job as a programmer.
According to one study, the price elasticity of demand for restaurant meals is -2.27. This implies that if restaurants want to increase their total revenues they should:
A) increase prices. B) decrease prices. C) leave prices unchanged. D) cannot be determined with the information given.
Assume the income elasticity of a good has been calculated to be +0.83. Based on this information, we can infer that the good is:
A) a normal good and a luxury. B) an inferior good and a necessity. C) a normal good and a necessity. D) an inferior good and a luxury.
Who are the decision makers in the most basic macroeconomic model?
a. the rest of the world and firms. b. government and firms c. households and government. d. households and firms.