Good A is an inferior good, an increase in income leads to:
Correct answer(s):
- a decrease in the demand for good A.
Subject
Managerial Economics
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Quizzes in Managerial Economics
A change in income will not lead to:
Correct answer(s):
- a movement along the demand curve.
Changes in the price of good A leads to a change in:
Correct answer(s):
- the quantity demanded of good A.
Which of the following would not shift the demand for good A?
Correct answer(s):
- drop in price of good A.
The law of demand states that, holding all else constant:
Correct answer(s):
- as price falls, quantity demanded rises.
The buyer side of the market is known as the:
Correct answer(s):
- demand side.
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is
Correct answer(s):
- 8
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a
Correct answer(s):
- shortage of 30 units.
Marginal net benefits in the above table
Correct answer(s):
- Initially decrease, reach a minimum and then increase
Net benefits in the above table
Correct answer(s):
- Initially decrease, reach a minimum and then increase
Total costs in the above table are
Correct answer(s):
- Decreasing at an decreasing rate
The opportunity cost of an action is the
Correct answer(s):
- Value of the most highly valued alternative action given up
If the interest rate is 7%, $500 received at the end of 9 years is worth how much today?
Correct answer(s):
- 500/(1 +.07)9
If the annual interest rate is 0%, the present value of receiving $210 in the next year is:
Correct answer(s):
- $210
Negotiation between the buyer and seller of a new ski-boat is an example of:
Correct answer(s):
- Consumer-producer rivalry
Given the benefit function B(Y) = 200Y – 3Y2, the marginal benefit is:
Correct answer(s):
- 200 - 6Y
Maximizing the lifetime value of the firm is equivalent to maximizing the firm’s current profits if the
Correct answer(s):
- Interest rate is larger than the growth rate in profits and both are constant
If the interest rate is 3%, the present value of $900 received at the end of 4 years is:
Correct answer(s):
- $799.64
If you put $700 in a savings account at an interest rate of 3%, how much money will you have in one year?
Correct answer(s):
- $721
If the interest rate is 12.5%, what is the present value of $200 received in one year?
Correct answer(s):
- $177.77