Firms do not change prices frequently because:
A. it is costly to do so.
B. customers will refuse to patronize firms that change prices frequently.
C. it is easier to change the quantity of capital used in production.
D. there are legal prohibitions against doing so.
Answer: A
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Wages and salaries are examples of:
A. consumption. B. labor income. C. profits. D. capital income.
Your authors argue that, since the 1960s in the U.S
A) poverty has substantially decreased. B) inequality has substantially increased. C) poverty has substantially increased. D) inequality has substantially decreased.
Refer to Figure 3-1. A decrease population would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
You raise your product price by $10 in market A but leave it unchanged in market B. Sales in A fall from 840 to 740 units per week while sales in B rise from 770 to 790 units. The Difference-in-difference estimate of the effect of the price change is:
a. 80 units b. 100 units c. 120 units d. 140 units