Social forces:
a. affect the price mechanism through cultural norms.
b. affect the price mechanism through the educational system.
c. affect the price mechanism through scarcity.
d. do not affect the price mechanism.
QUESTION 2Which of the following makes a firm's resources hard to imitate?
a. They flow from the firm's unique history
b. The link between resources and advantages is difficult to discern
c. Resources emanate from a socially complex organizational structure
d. All of the above
QUESTION 3Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30. If her house gets broken into, she faces a property loss of 10,000, otherwise she gets to keep her 100,000 . What is the minimum price an insurance company could offer (if it had no other costs)?
a. 10,000
b. 3,000
c. 100,000
d. 5,000
QUESTION 4Economic reasoning is based on the premise that:
a. all decisions or actions are costless.
b. only non-economic decisions or actions have a cost associated with them.
c. only economic decisions or actions have a cost associated with them.
d. all decisions and actions have a cost associated with them.
QUESTION 5Which of the following makes a firm's resources hard to imitate?
a. Do not use resources that flow from the firm's unique history
b. Keep the link between resources and advantage simple
c. Resources emanate from a socially complex organizational structure
d. All of the above
QUESTION 6Scatterbrain Samantha often forgets to lock her house. This has caused the probability of a burglary to be 30. If her house gets broken into, she faces a property loss of 10,000, otherwise she gets to keep her 100,000 . If Samantha is offered a full coverage insurance policy for her house at 2000, would she buy the insurance?
a. Yes because she gets to now enjoy her wealth risk-free
b. No, because she can take the risk and be better off
c. Yes, because she gains on average with the insurance
d. Both A&C
QUESTION 7A price ceiling is binding when
a. the government sets price above market equilibrium price.
b. the equivalent of an implicit tax on producers and an implicit subsidy to consumers.
c. the government sets price below market equilibrium price.
d. Both b and c.
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