A weakness of the classical model is
a. the quality of its explanations for long-run movements of the economy
b. its confusion between the long and short run
c. its assumption that the labor market always clears
d. its treatment of crowding out in the long run
e. its inadequate attention to the long run
C
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If property rights are not well enforced, all of the following are likely to occur except
A) a significant number of people will be willing to risk their funds by investing them in local businesses. B) economic efficiency will be reduced. C) an economy will produce inside its production possibilities frontier. D) fewer goods and services will be produced.
Zoe is an executive at Dell Computer Company who is in charge of designing the next version of laptop computers. She will consider such features as screen size, weight, processor speed, and CD and DVD drives
Given the fact that it is costly to include more features in new products, why might Zoe be interested in data on how much consumers paid for a range of laptops with different attributes? A) in order to estimate willingness to pay for each feature. B) in order to set an optimal price for the laptops. C) in order to determine the best features to include. D) in order to estimate willingness to trade off one feature for another. E) all of the above