A) shows all the combinations of goods that yield the same utility. B) shows all the combinations of goods that require the same total expenditure. C) has a slope that depends on consumers' income. D) usually slopes upward. A) shows all the combinations of goods that yield the same utility. B) shows all the combinations of goods that require the same total expenditure. C) has a slope that depends on consumers' income. D) usually slopes upward.

A) costs that were incurred in the past and cannot be recovered and thus should not affect current decisions. B) all the costs that a firm must incur in the process of production. C) the costs that change proportionately with a change in the output. D) the quantities of a good that are given up to obtain one unit of another good. A) costs that were incurred in the past and cannot be recovered and thus should not affect current decisions. B) all the costs that a firm must incur in the process of production. C) the costs that change proportionately with a change in the output. D) the quantities of a good that are given up to obtain one unit of another good.

Exam 2: Economists View of Behavior

O'Roberts receives a cash prize of $3,000 and is trying to decide how much money to invest at an interest rate of 5 percent and how much to spend now.Consider his intertemporal budget constraint where future interest income is measured on the vertical axis.If the interest rate were 7 percent instead,his budget constraint would

(Multiple Choice)

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Question 21

ABC Corp.has a bonus plan in place for its CEO,linking her pay to annual earnings.ABC will pay her $180,000 if earnings are high,$90,000 if they are normal,and $0 if they are low.Each event is estimated to have equal probability.Assume the CEO is indifferent between this bonus plan and receiving $75,000 with certainty.Which of the following is true?

(Multiple Choice)

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Question 22

If employees' activities follow the economists' view of behavior,managers will be most effective if they can

(Multiple Choice)

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Question 23

Johnny consumes only bread and milk.Suppose the quantity of milk is measured along the horizontal axis.If the price of milk rises,his budget constraint will

(Multiple Choice)

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Question 24

Susan Chen is a stock analyst.She values two goods: money (income)and her integrity.Her bonus is based on the number of investments she recommends to the company.Generally speaking,the higher the bonus she receives,

(Multiple Choice)

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Question 25

Assume MACROSOFT is planning to develop and sell a new word processor.It estimates that R&D expenses will amount to $300,000 for this new software,and it will have to invest an additional $150,000 to advertise and distribute the new product.If MACROSOFT's managers are risk-neutral,they will undertake this project if the expected revenues from the sales of the new software are

(Multiple Choice)

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Question 26

The substitution effect

(Multiple Choice)

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Question 27

A budget line

(Multiple Choice)

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Question 28

Patrick consumes only two goods: Celtic Music concerts and Celtic Springs Water.Patrick earns $100 per month at his part-time job in the library.The price of Celtic concerts is $10.The price of Celtic Springs Water is $2.Patrick currently goes to 5 Celtic concerts and consumes 25 bottles of Celtic Spring Water in a month. (a)Draw Patrick's budget constraint and optimal consumption bundle such that Celtic concerts are measured on the horizontal axis. (b)In April,Patrick receives a 5 percent pay increase.Inflation raises the price of concerts to $10.50 and the price of Celtic Springs Water to $2.10.Draw Patrick's new budget constraint and optimal consumption bundle,considering that the number of Celtic concerts is measured along the horizontal axis.How many Celtic concerts does he attend in April? How many bottles of water does he drink in April?

(Essay)

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Question 29

Assume that the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis.If Andy likes both apples and oranges,then his Marginal Rate of Substitution along the indifference curve indicates

(Multiple Choice)

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Question 30

Smith is given a voucher that can be spent only on textbooks.Smith has a budget constraint with textbooks measured along the horizontal axis and everything else on the vertical axis.Suppose everything else is comprised only of normal goods.Then

(Multiple Choice)

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Question 31

The absolute value of the marginal rate of substitution is a measure of

(Multiple Choice)

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Question 32

Assume Barbara likes driving fast,but hates getting injured.If Congress passes a law for mandatory airbags,Barbara is likely to experience an increased number of accidents.Why?

(Multiple Choice)

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Question 33

Sunk costs refer to

(Multiple Choice)

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Question 34

Which of the following is a feature of a behavioral economic model?

(Multiple Choice)

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Question 35

Robert only consumes X and Y,and his indifference curves have the usual convex shape.Consider the consumption bundles (3,9),(6,6),and (9,3)(Hint: The consumption bundles completely exhaust Robert's income).If Robert is indifferent between (3,9)and (9,3),then:

(Multiple Choice)

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Question 36

You purchase both potatoes and gasoline regularly.Your income increases and you purchase more gasoline and less potatoes.This implies that

(Multiple Choice)

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Question 37

If Larry starts a new pizza parlor and hires a manager for $30,000 per year,this implies that

(Multiple Choice)

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Question 38

Assume that the quantity of X is measured on the horizontal axis,and the quantity of Y is measured on the vertical axis.Assume that the price of X is $3 and the price of Y is $6.If Amanda has $90 to spend on X and Y,then

(Multiple Choice)

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Question 39

Which of the following is a possible criticism of the happy-is-productive model?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 45

If employees' activities follow the economists' view of behavior,managers will be most effective if they can

Johnny consumes only bread and milk.Suppose the quantity of milk is measured along the horizontal axis.If the price of milk rises,his budget constraint will

Susan Chen is a stock analyst.She values two goods: money (income)and her integrity.Her bonus is based on the number of investments she recommends to the company.Generally speaking,the higher the bonus she receives,

The substitution effect

A budget line

Assume that the quantity of apples is measured on the horizontal axis and the quantity of oranges is measured on the vertical axis.If Andy likes both apples and oranges,then his Marginal Rate of Substitution along the indifference curve indicates

Smith is given a voucher that can be spent only on textbooks.Smith has a budget constraint with textbooks measured along the horizontal axis and everything else on the vertical axis.Suppose everything else is comprised only of normal goods.Then

The absolute value of the marginal rate of substitution is a measure of

Assume Barbara likes driving fast,but hates getting injured.If Congress passes a law for mandatory airbags,Barbara is likely to experience an increased number of accidents.Why?

Sunk costs refer to

Which of the following is a feature of a behavioral economic model?

Robert only consumes X and Y,and his indifference curves have the usual convex shape.Consider the consumption bundles (3,9),(6,6),and (9,3)(Hint: The consumption bundles completely exhaust Robert's income).If Robert is indifferent between (3,9)and (9,3),then:

You purchase both potatoes and gasoline regularly.Your income increases and you purchase more gasoline and less potatoes.This implies that

If Larry starts a new pizza parlor and hires a manager for $30,000 per year,this implies that

Assume that the quantity of X is measured on the horizontal axis,and the quantity of Y is measured on the vertical axis.Assume that the price of X is $3 and the price of Y is $6.If Amanda has $90 to spend on X and Y,then

Which of the following is a possible criticism of the happy-is-productive model?

Introduction

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Economics of Strategy: Game Theory

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

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