The electric power company in a city increased its prices by 15% this year. Since the demand for electricity is a(n) ________ demand in the short run, the equilibrium price will ________.
A. inelastic; greatly increase
B. elastic; decrease
C. inelastic; decrease
Ans: A. inelastic; greatly increase
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The labor force divided by the working age population equals the:
A. participation rate. B. unemployment rate. C. population rate. D. employment rate.
Suppose in Zurich £/$ = 0.5, while in New York SF/$ = 2.5, but in London £/SF = 0.1
(a) Is there any arbitrage profit that could be made with a triangular arbitrage action? Describe an example of how such a profit may be earned. (b) What would you guess about the relationship between the dollar rates and cross-rates after arbitrageurs notice this profit opportunity?
Predatory pricing is a strategy:
A. whereby a firm temporarily prices below its marginal cost to drive competitors out of the market. B. whereby a firm enjoys lower costs due to knowledge gained from its past production decisions. C. whereby an incumbent maintains a price below the monopoly level to prevent entry by potential competitors. D. used by a vertically integrated firm to squeeze the margins of its competitors.
Give a brief explanation of the "superstar economy" as a factor in the widening of income inequality.
What will be an ideal response?