Question

21. a recent medial study shows hat peanuts are one of the leading causes of high cholesterol. this would cause the demand for peanuts to

a) not change

b) go down the demand curve

c) shift to the right

d) shift to the left

22) a compensating wage differential is

a) the difference between the wage of an individual working in favorable conditions and the wage of an individual working in unfavorable conditions

b) compensation paid to an individual for working in a less desirable environment

c) premium paid to a security holder to compensate him for hearing a higher risk

d) only b and c

23) porter's five forces portray

a) a zero sum game

b) a game where your profitability comes at the expense of someone else's

d) only a and b

Answer 1

21. d) shift to the left

Explanation: Because of the news, the quantity demanded for peanuts would fall at each given price. So, the demand curve would shift left.

22. b) compensation paid to an individual for working in a less desirable environment

Explanation: It is the additional compensation paid to a worker to accept a job in a less desirable environment.

23. Option D

Explanation: It deals with a competitive market with a fixed total pay.