For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use?
a. ordinary least squares regression on historical data
b. market experiments, where the price is set differently in two markets
c. consumer surveys, where potential customers hear about the product and are asked their opinions
d. double log functional form regression model
e. all of the above are equally useful in this case
c
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If a firm increases production, then its:
A. variable costs rise. B. fixed costs stay the same. C. total costs increase. D. All of these are true.
If uncertainty causes commercial banks to increase their holdings of excess reserves, other things constant, this will
a. reduce the money supply during a period of inflation and increase it during a recession. b. reduce the size of the deposit expansion multiplier. c. increase the size of deposit expansion multiplier. d. reduce the size of the deposit expansion multiplier during a period of inflation and increase it during a recession.
_____ goods are rivalrous in consumption and nonexcludable
Fill in the blank(s) with the appropriate word(s).
Which of the following is not a consequence of above-equilibrium wages in a labor market?
a. a surplus of labor b. unemployment c. more unionized jobs d. All of the above are consequences of above-equilibrium wages.