Which of the following best illustrates the concept of derived demand?
a. An increase in the wages of autoworkers leads to an increase in the demand for robots in automobile factories.
b. An auto firm decides to supply more minivans when there is a decrease in the demand for station wagons.
c. An increase in the price of gasoline leads to an increase in the demand for small cars.
d. An automobile firm faces an increase in the demand for cars it supplies to the market, which leads to an increase in the demand for autoworkers.
QUESTION 2How does supervision benefit team production?
QUESTION 3Public goods are goods that have
A) only a few low income consumers.
B) clear property right.
C) nonexcludability and nonrivalrous.
D) features that cannot be addressed by creating property rights.
QUESTION 4The price of any productive resource is ____ related to ____ the final good or service:
a. inversely; demand for
b. directly; demand for
c. directly; supply of
d. not; supply of
QUESTION 5Which of the following shareholder rights plan when implemented provides all shareholders other than outsiders the right to purchase additional shares at a discount?
a. A flip-in poison pill
b. A crown jewels defense
c. A white knight bid
d. A de-conglomeration
QUESTION 6Tournaments are used to identify the most productive person or the best player.
Indicate whether the statement is true or false
QUESTION 7If the demand for softballs increases, one could expect the demand for leather to increase. This is due to the
a. principle of diminishing marginal product.
b. change in the opportunity cost of producing a softball.
c. reduction in the cost of producing softballs.
d. demand for an input being a derived demand.
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