In the basket of goods that is used to compute the consumer price index, which of the following categories of consumer spending is the largest?
a. education & communication
b. food & beverages
c. medical care
d. recreation
b
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If a substitute good is easy to find, then demand for a good is
A) elastic. B) inelastic. C) unit elastic. D) perfectly inelastic. E) Substitutes don't have any effect on elasticity.
When the fox is guarding the henhouse, that is an example of the
A) share-the-gains, share-the-pains theory. B) regulatory hypothesis. C) capture hypothesis. D) creative theory.
Which of the following is TRUE?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, lower prices on both the products c. After acquiring a complementary product, raise prices on both the products d. None of the above
A heuristic is a:
A. positive-framing method. B. formal policy used by firms to drive employee behavior. C. mental shortcut that helps us make decisions. D. method to increase the price of your vices.