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1. A recent study found that an increase in the Federal tax on beer (and thus an increase in the price of beer) would reduce the demand for marijuana. We can conclude that:
A- beer and marijuana are substitute goods.
B- beer and marijuana are complementary goods.
C- beer is an inferior good.
D- marijuana is an inferior good.
2. Assume the demand curve for product X shifts to the right. This might be caused by:
A- a decline in income if X is an inferior good.
B- a decline in the price of Z if X and Z are substitute goods.
C- a change in consumer tastes that is unfavorable to X.
Using a prisoner's dilemma game such as the "wedding game." explain how a positional arms race can occur. In your answer be sure to explain positional arms races, the nature of the wedding game, etc.
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Hiring more supervisory personnel can reduce the principal-agent problem and decrease costs. can reduce the principal-agent problem but increase costs. will eliminate the principal-agent problem. is contrary to the profit incentive.
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a professsionl society whoes dues are normally 100 per year is offering life memebrships for 1250. assume you are a
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