In their surveys of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler found that
A) most people considered an increase in price by firms following an increase in their costs to be fair but believed it was unfair for firms to raise their prices because of an increase in demand.
B) most people considered it unfair for firms to raise their prices because of an increase in their costs, but fair to raise their prices after an increase in demand.
C) most people believed that low-income people were hurt most by increases in prices.
D) most people considered any increase in price to be unfair as it led to an increase in profits.
A
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Suppose a single-input production function has initially increasing but eventually decreasing marginal product. In this case, the first order condition for the profit maximization problem
A. is necessary for identifying the profit maximizing production plan. B. is sufficient for identifying the profit maximizing production plan. C. is both necessary and sufficient for identifying the profit maximizing production plan. D. is neither necessary nor sufficient for identifying the profit maximizing production plan.
If a car salesman is paid a fixed commission when he sells a car, the owner is most likely to see
a. Large margins on sales b. Low margins on sales c. No sales d. None of the above
The expenditure method dictates that GDP is equal to C + I + G + (X M)
a. True b. False Indicate whether the statement is true or false
The corporate hierarchy is the most complex and over managed in
A. Japan. B. South Korea. C. France. D. United States