A firm that is a price taker faces a perfectly ______ demand curve.
A. horizontal
B. vertical
C. inelastic
D. convex
A. horizontal
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In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions can affect other divisions d. Managers typically do not have the incentives to run their division efficiently
One interesting feature of federal government spending in the United States is that:
A. it has historically always been greater than the revenues generated. B. little of it is discretionary. C. the majority of it is discretionary. D. it has historically always been less than the revenues generated, until the last 20 years.
If a product has an elastic demand, it means that:
a. consumers are relatively sensitive to a change in the price of the product. b. consumers are relatively insensitive to a change in the quantity demanded of the product. c. consumers are relatively insensitive to a change in the price of the product. d. producers are relatively insensitive to a change in the price of the product. e. producers are relatively sensitive to a change in the quantity demanded of the product.
Which theory explains the fact that some firms may choose to pay their employees more then they would earn as determined by equilibrium in the labor market?
a. the theory of efficiency wages b. the marginal-productivity theory c. human-capital theory d. signaling theory