What are the advantages to a firm of selling gift certificates?
A. Reduced strain on the refund department and greater quantity sold if your good is a normal good.
B. Greater quantity sold if your good is an inferior good.
C. Greater quantity sold if your good is a normal good.
D. Reduced strain on the refund department and greater quantity sold if your good is an inferior good.
Answer: A
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Everything else held constant, an increase in expected inflation, lowers the expected return on ________ compared to ________ assets
A) bonds; financial B) bonds; real C) real estate; financial D) real estate; real
Peg's Kegs sells kegs in a perfectly competitive market. Because low demand forced price below average variable cost, Peg has made the short-run decision to shut down. Her current loss is
a. zero b. greater than if she had kept operating c. the same as the losses she was incurring while operating d. equal to fixed cost e. less than her total revenue
Which of the following goods is likely to have the most price inelastic demand?
a. margarine b. Tide detergent c. cigarettes d. Coca-Cola e. ground beef
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. Which of the following statements is correct?
A. Ana has both an absolute advantage and the comparative advantage in fudge. B. Ana has the comparative advantage in fudge, but Leo has the absolute advantage in fudge. C. Ana has the comparative advantage in toffee, but Leo has the absolute advantage in toffee. D. Leo has both the absolute advantage and the comparative advantage in fudge.