Category: Economics

➤ How can ethical lapses affect product quality and competition?
Unethical practices often trigger a race to the bottom in product quality. To cut costs, firms reduce materials, safety checks, or service standards. Honest competitors struggle to compete on price alone, which can drive them out and leave reduced product differentiation, weaker innovation incentives, and concentrated markets dominated by lower-quality providers.

➤ How do you calculate whether a price change will increase total revenue?
Compute the percentage change in price and the resulting percentage change in quantity demanded. Compare them: if %ΔP > |%ΔQ|, total revenue increases. Alternatively compute price elasticity (ε = %ΔQ/%ΔP); if |ε| < 1, the demand is inelastic and a price rise raises total revenue.

➤ When the Court grants cert, does it grant exclusive jurisdiction?
No. Granting certiorari puts the Supreme Court on the case for appellate review, but it does not typically create exclusive jurisdiction. The Court resolves the federal or constitutional question and may remand to the lower court. Exclusive jurisdiction is rare and arises from specific constitutional or statutory provisions, not ordinary cert grants.

If the marginal cost of producing hair styling decreases, then the efficient quantity of hair stylings to produce
depends on the marginal benefit
decreases
remains the same
increases

In 2010 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2010A) are $130 billion.B) are $200 billion.C) are $270 billion.D) are $340 billion.

If the supply of a good increases while the demand for that good decreases, the equilibrium quantity willQuestion 11 options:
a) remain unchanged.
b) increase.
c) be indeterminate.
d) decrease.

In the circular flow model which sector(s) is/ are eliminated from the model?
the household and firms sector
the government and the foreign sector
the financial sector
only b and c

If the unemployment rate decreases from 10% to 8%, the economy will ◻a. move closer to the ppf. ◻b. move away from the ppf toward the origin.c. remain on the ppf. ◻d. remain on the origin.