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1. Which of the following would not tend to lower the price of VCR? a. Decreasing price of DVD players. b. Increasing price of video cassettes. c. Improvements in VCR production technology. d. Reduced price of raw material used in making VCR'S e. Increasing price of pay per view movies on cable TV. 2. At a price of $9.50/pound, people buy 45 pounds of lamb. At a price of $10.50/pound, people buy 35 pounds of lamb. What is the arc elasticity of demand for lamb in this price range? a. 1.0 b. 2.5 c. 0.4 d. 3.0 e. none of the above 3.An unregulated negative production externality will cause a private market to A. Produce less than is socially optimal B. Produce more than is socially optimal C. Produce more than market equilibrium D. Produce less than market equilibrium E. Produce the amount that is socially optimal 4.On the foreign exchange market, an increase in a country's exchange rate A. Decrease the quantity demand of its currency B. Increase the quantity demand of its currency C. Has no effect on the quantity demand of its currency D. Decrease the quantity supplied of its currency E. has no effect of the quantity supplied of its currency
1. the amount of compensation associated with the income effect of a price change is calleda. a compensation variation
Mitchell Electronics produces a home video game that has become very popular with children. Mitchell's managers have reason to believe that Wright Televideo Company is considering entering the market with a competing product.
Consider a manufacturing firm operating a given scale of plant
Over the business cycle, real GDP tends to increase during the expansion and decrease during the contraction. Can you name some other macro variables that fluctuate over the business cycle like GDP does?
Sort the following scenarios according to whether they would cause a shift in the demand curve or movement along a demand curve.
a company is considering to invest in a venture project and they have three options two they can buy and one is a
It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road
Businesses usually decide in using automation and labor in production. An automotive environment may have high fixed costs and low variable costs,
what is meant by inflation? write down the causes of inflation? is inflation desirable and what can be done to control
use the phillips curve to describe the tradeoffs between inflation and the unemployment rate both in the short-run and
The price of capital, labor and materials are r, w, and m respectively. (1) In the short run, the amount of capital is fixed at k=k0. What are the conditional demand functions for labor and materials in the short run? (2) what is the short run total ..
Due to the changing environment and external triggers, contingency planning is necessary. What qualities make a future issue a “trigger”? Consider you are on the strategic planning team for a soft drink company.
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