When the price of good X rises, the demand for good Y falls. Explain what this relationship implies about the two goods
What will be an ideal response?
Goods X and Y must be complements. When the price of good X rises, the quantity of good X demanded will fall. If the demand for Y also falls, the two goods must be used together.
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Agency problems and costs are incurred whenever the owners of a firm delegate decision-making authority to management
a. true b. false
A home appliances supplier offers substantial discounts to customers if they buy several of the firm's products. When bought together, these items cost considerably less than the sum of the prices of the items if they were bought separately. Which pricing arrangement is being discussed here?
a. Price dealing b. Tacit collusion c. Bundling d. Skimming
Tax revenue
What will be an ideal response?
When U.S. residents buy foreign assets from foreigners, the ______.
a. monetary outflows provide foreigners with U.S. dollars b. purchases are recorded as debits in the current account c. monetary inflows provide U.S. residents with foreign currency d. purchases are recorded as credits in the financial account