When two variables move in the same direction, they are said to be:
A) unitary correlated. B) uncorrelated.
C) positively correlated. D) a negatively correlated.
C
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Economic growth is severely impeded in economies
A) with a lack of clear property rights. B) with high rates of convergence. C) which encourage induced innovation. D) with a strong market system.
Relative-price variability is "automatic" when
a. firms change prices only once in a while. b. firms change prices often. c. people increase the frequency of their trips to the bank. d. people decrease the frequency of their trips to the bank.
Candy Cane Corporation (CCC) produces 100,000 boxes of candy canes per year that sell for $3 a box. If variable costs are $2 per box and it has $125,000 in fixed operating costs, in the short run the CCC should:
A. reduce production until the break-even point is reached. B. shut down as fixed costs are not being covered. C. keep producing as profits are $25,000. D. keep producing because variable costs are covered.
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), what fraction of used refrigerators sold will actually be plums (high quality)?
A. 50/250 B. 50/300 C. 250/300 D. None of the refrigerators sold will be plums.