The Walt Disney Company uses cost-plus pricing to determine the prices it charges for admission and rides at Disneyland and Walt Disney World.
Indicate whether the statement is true or false
Ques. 2If marginal costs differ quite substantially from average total costs, then using a cost-plus pricing schedule will not lead to the profit maximizing price.
Indicate whether the statement is true or false
Ques. 3In 2014, global revenue for IBM was 2 billion lower when measured in dollars than when measured in local currencies. The reason for this discrepancy is the value of the
A) euro decreased relative to the British pound.
B) U.S. dollar decreased relative to the Japanese yen.
C) British pound increased relative to the U.S. dollar.
D) U.S. dollar increased relative to most other currencies.
Ques. 4If Congress passed a one-time tax cut in order to stimulate the economy in 2014, and tax rate levels returned to their pre-2014 level in 2015, how should this tax cut affect the economy?
A) The tax cut would increase consumption spending more than would a permanent tax cut.
B) The tax cut would lower the price level in 2014.
C) The tax cut would increase consumption spending by the same amount as would a permanent tax cut.
D) The tax cut would increase consumption spending less than would a permanent tax cut.
Ques. 5When Jack's income increases by 1,000, he spends an additional 850 dollars. This implies that his marginal propensity to save is 0.85.
Indicate whether the statement is true or false
Ques. 6Long-run macroeconomic equilibrium occurs when
A) aggregate demand equals short-run aggregate supply and they intersect at a point on the long-run aggregate supply curve.
B) structural and frictional unemployment equals zero.
C) aggregate demand equals short-run aggregate supply.
D) output is above potential GDP.
Ques. 7The application of economic analysis to human resources issues is called personnel economics.
Indicate whether the statement is true or false
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