Inferior goods have an income elasticity of demand that is
a. positive
b. negative
c. 0
d. greater than 1 in absolute value
e. equal to 1 in absolute value
B
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What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies. B) Mixed strategies call for randomizing over possible actions, pure strategies do not. C) Pure strategies are much more common than mixed strategies. D) Mixed strategies are not optimal whereas pure strategies are.
The owner of a sole proprietorship has
a. unlimited liability: if the firm goes bankrupt, the owner is liable for all debts. b. unlimited liability: if the firm goes bankrupt, the owner is liable for the amount of the investment. c. limited liability: if the firm goes bankrupt, the owner does not have to pay. d. unlimited liability: if the firm goes bankrupt, the owner is liable for the amount of the fixed assets only.