The number of U.S. households with access to the Internet has grown is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information.
B. less information because the Internet has increased the benefit of gathering information.
C. less information because the Internet has lowered the cost of gathering information.
D. more information because the Internet has increased the cost of gathering information.
Answer: A
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How many units of capital would you hire?
Exhibit 11-1 Disposable income and consumption data Income (Y) Change inDisposable Income Consumption (C) 0 500 1,000 1,000 1,400 2,000 1,000 2,200 3,000 1,000 2,900 4,000 1,000 3,500 5,000 1,000 4,000 In Exhibit 11-1, when disposable income is increased from $2,000 to $3,000 to $4,000,
A. total consumption increases by $1,000. B. the marginal propensity to consume remains constant. C. the marginal propensity to consume decreases from 0.7 to 0.6. D. the marginal propensity to consume decreases from 0.8 to 0.7.
Which of the following is NOT an artificial barrier to entry?
A. a patent B. government franchise C. large economies of scale D. government licensing
Suppose a firm manager has a base salary of $50,000 and earns 2.5 percent of all sales. Determine the manager's income if revenues are $20,000,000 and profits are $5,000,000.
A. $175,000 B. $50,000 C. $550,000 D. $700,000