11) Which of the following firms is most likely to be a monopoly? A) local restaurant B) local distributor of natural gas C) local book store D) clothing store E) local bank 12) An example of a monopoly would be A) one of many U.S. wheat farmers. B) one of the few U.S. auto makers. C) AT&T cell phone service. D) the local […]

  51) Consider the market for financial capital in the long run. The national saving curve is upward sloping because an increase in the real interest rate A) leads households to increase their current consumption. B) leads to an increase in investment demand. C) decreases the supply of public saving. D) leads households to reduce their current consumption. E) decreases the supply of private saving. […]

  Table 7-2   Quantity of Soup (cups) Total Utility Quantity of Sandwiches Total Utility 1 40 1   45 2 60 2   75 3 72 3 102 4 82 4 120 5 88 5 135 6 90 6 145   Table 7-2 above shows Keira’s utility from soup and sandwiches. The price of soup is $2 per cup and the price of a […]

    38) “The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell, the demand for incandescent light bulbs decreased even further.” Evaluate this statement. A) The statement is false. A decrease in […]

  18) A dominant strategy ________. A) always results in equal payoffs to all the players in a game B) always results in zero payoff to the opponent C) results in a higher payoff irrespective of the strategy chosen by the other player D) always results in a lower payoff irrespective of the strategy chosen by the other player 19) Which of the following is […]

  81. Meow Products Ltd.Meow Products Ltd. produces and sells scratching posts for cats. In the current year, the company had expected to sell 12,000 posts but actually produced and sold 10,000 posts. The following information is available regarding the standard cost to produce a single post:  Direct materials: 3 feet @ 1.75 per foot Direct labor: 15 minutes @ $.30 per minute     In […]

    Sea Grove Beach Corporation Sea Grove Beach Corporation is executing an initial public offering with the following characteristics. The company will sell 12 million shares at an offer price of $20 per share, the underwriter will charge a 7 percent underwriting fee, and the shares are expected to sell for $27.50 per share by the end of the first day’s trading. Assuming this […]

    61) In the 1973 movie Save the Tiger, Jack Lemmon plays Harry Stoner, the CEO of a clothing manufacturer whose business has fallen on hard times. At one point in the movie, Stoner convinces his partner to hire someone to burn one of their buildings to collect on their insurance policy. What term refers to the information problem that led the insurance company […]

  41) A consumer is in equilibrium when the A) consumer is buying any combination of goods and services on his or her budget line. B) consumer is buying the combination of goods and services on the budget line and on the highest attainable indifference curve. C) marginal rate of substitution is as small as possible. D) marginal rate of substitution is as large as […]

    37) In the desire to have a celebrity’s image protected to prevent it from being used in ways he would not approve, a celebrity’s estate A) will probably not be successful, since there are no laws regulating this kind of use in the United States. B) will have to be granted a patent declaring the celebrity’s image a new product, and this will […]