Economics is best defined as the study of:
A. financial decision-making.
B. how consumers make purchasing decisions.
C. the choices made by people faced with scarcity.
D. inflation, unemployment, and economic growth.
Answer: C
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The bargaining power of buyers increases if
A) the input in question is not a critical component of production. B) there are wide variations in the quality of inputs from supplier to supplier. C) there are many large buyers. D) the input in question has few substitutes.
Refer to Scenario 5.7. As a risk-neutral executive, Natasha
A) is indifferent between projects D and E. B) prefers project E to project D, but do not necessarily consider E the best. C) prefers project E to all other projects. D) seeks the highest "profit if successful" of all the projects. E) seeks the project with the most even odds.
An increase in per capita income is guaranteed by:
A. increasing income slower than the population. B. reducing population slower than income. C. increasing population faster than income. D. increasing income faster than the population.
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush