When a supplier becomes more profitable
a. there is increased benefits from acquiring it
b. the benefits from a stronger firm-to-firm relationship are increased
c. the benefits from a stronger firm-to-firm relationship are decreased
d. there is no additional reason to acquire it
QUESTION 2An increase in the excise tax on alcohol
a. will have no effect on alcohol consumption.
b. will generate minimal tax revenues for the federal government.
c. coupled with a uniform drinking age nationwide would save lives.
d. will generate substantial revenues is demand is elastic.
e. all of the above.
QUESTION 3The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices)
a. elastic, unit elastic, inelastic.
b. unit elastic, inelastic, elastic.
c. inelastic, unit elastic, elastic.
d. elastic, inelastic, unit elastic.
QUESTION 4Vertical relationships can increase profits through
a. preventing firms from evading regulation
b. creating a double-markup problem
c. making the incentives of manufacturers and retailers unaligned
d. facilitating price discrimination
QUESTION 5The most common measures used to evaluate health outcomes are
a. Life expectancy at birth.
b. Life expectancy from external causes.
c. Infant mortality.
d. Both a and c
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