If a technological advance makes it possible to produce computers at a lower cost:
A. the demand for computers increases.
B. the demand for computers decreases.
C. the supply of computers increases.
D. the supply of computers decreases.
Answer: C
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Taxes listed as Federal Insurance Contribution Act taxes on the employee paystub are ________
A) payroll taxes B) value-added taxes C) income taxes D) excise taxes
Because the presence of a warranty for a good is a signal that the good is of high quality,
A) consumers are willing and able to pay more for a good that carries a warranty. B) consumers are willing to buy goods if and only if the goods come with warranties. C) producers do not need to charge extra for warranties. D) producers can use warranties to sort out high-risk customers. E) producers must make warranties available on all goods.
The Environmental Protection Agency (EPA) requires that firms in a certain industry adopt a particular technology to reduce the emission of pollutants. Is this requirement a command- and-control policy or is it a market-based policy?
Which of the following strategies will most likely NOT enhance profits in a Bertrand oligopoly?
A. Two-part pricing B. Randomized pricing C. Price matching D. Brand loyalty