Suppose a cup of coffee at the campus coffee shop is 2.50 and a cup of hot tea is 1.25 . Suppose a student's beverage budget is 20 per week. Suppose the student simply prefers more caffeine to less and that the tea sold has the same amount of caffeine as the coffee. The student will buy
a. all tea.
b. all coffee.
c. a mix of coffee and tea.
d. quantities that cannot be determined from the information given here.
QUESTION 2When a transfer price is set higher
a. the buying division will want to sell less to the selling division
b. the buying division will want to sell more to the selling division
c. the selling division will want to sell less to the buying division
d. the selling division will want to sell more to the buying division
QUESTION 3Which of the following statements about the distribution of physicians among specialties is true in the United States?
a. The majority of physicians specialize in general/family practice.
b. There are twice as many generalists as there are specialists.
c. There are twice as many specialists as there are generalists.
d. The specialty distribution in the U.S. is similar to that of the rest of the world.
e. None of the above.
QUESTION 4Suppose a cup of coffee at the campus coffee shop is 2.50 and a cup of hot tea is 1.25 and that a student's beverage budget is 20 per week. What is the market tradeoff between coffee and tea?
a. 1 coffee to 1 tea
b. 2 coffee to 1 tea
c. 1 coffee to 2 tea
d. 2 coffee to 2 tea
QUESTION 5When a transfer price is set lower
a. the buying division will chose to purchase less from the selling division
b. the buying division will chose to purchase more from the selling division
c. the selling division will chose to purchase less from the buying division
d. the selling division will chose to purchase more from the buying division
QUESTION 6Which of the following would increase the supply of physicians?
a. Increasing the cost of attending medical school.
b. More scholarships and grants to cover medical school tuition.
c. Increasing the medical school entrance requirements to include 15 hours of economics.
d. Making it easier for plaintiffs to prove medical malpractice claims.
e. Paying medical schools to eliminate residency opportunities in some specialties.
QUESTION 7Suppose a cup of coffee at the campus coffee shop is 2.50 and a cup of hot tea is 1.25 and that a student's beverage budget is 20 per week. What is the most cups of tea the student could buy?
a. 20
b. 16
c. 10
d. 8
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