Carefully define the following terms and explain their importance.
a. Variable
b. Ray
c. Slope
d. Contour map
What will be an ideal response?
a. A variable is an object, such as price, whose magnitude is measured by a number. It is used to analyze what happens to other things when the size of that number changes.b. A ray is a straight line emanating from a particular point an extending endlessly in one direction.c. The slope of a line is change per unit from left to right. It is measured by the change in the variable on the vertical axis divided by the change in the variable on the horizontal axis.d. A contour map shows all points representing different combinations of two variables, for example, combinations of labor and raw materials capable of producing a given output. (Other examples of contour maps could be drawn from later chapters.)
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A perfectly competitive firm definitely makes an economic profit in the short run if price is
A) equal to marginal cost. B) equal to average total cost. C) greater than average total cost. D) greater than marginal cost. E) greater than average variable cost.
What two trends was Canada trying to address in negotiating CUSTA?
What will be an ideal response?
Which of the following statements about junk bonds is false?
A) Given the likelihood of default, it is never profitable to purchase junk bonds. B) They pay higher interest rates than investment grade bonds due to higher perceived risk. C) Prior to the 1970s, corporations were unable to issue junk bonds. D) A popular measure of junk bond yields reached a record low in 2012.
Mechanism design can be used to provide employers and employees with the right incentives in labor markets.
Answer the following statement true (T) or false (F)