When hyperinflation forces Pedro to change the price stickers on the books in his bookstore very frequently to keep up with the aggregate price level, economists say that Pedro is experiencing a:
What will be an ideal response?
menu cost.
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The cross elasticity between computers and software is
A) negative because they are substitutes. B) positive because they are substitutes. C) negative because they are complements. D) positive because they are complements. E) positive because they are normal goods.
Samurai Sushi produces sushi using one variable input - labor. Samurai Sushi is a consumer in the ________ market and a producer in the ________ market.
A. labor; sushi B. capital; labor C. capital; sushi D. sushi; labor
Refer to the information provided in Table 33.2 below to answer the question(s) that follow.
Table 33.2
Refer to Table 33.2. In Thailand, the opportunity cost of
A. a motorcycle is 1/30 of a tractor. B. a motorcycle is 1/15 of a tractor. C. a motorcycle is 15 tractors. D. a tractor is 20 motorcycles.
In tacit collusion, price visibility ________ the cost of cheating and ________ the temptation to cheat.
A) decreases; increases B) increases; increases C) decreases; decreases D) increases; decreases