A decrease in the budget deficit will have a:
A. less positive effect on income when crowding out is weak.
B. more negative effect on income when crowding out is strong.
C. less negative effect on income when crowding out is strong.
D. more positive effect on income when crowding out is weak.
Answer: C
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The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer b. the costs of arbitraging the price difference across markets is large c. the manufacturer acquires the distributer in the lower priced market d. competition provides little ability for the manufacturer to price above marginal cost
An airline can profit by offering standby customers an unsold seat at a substantial discount just before takeoff because
a. additional passengers are needed to balance the load. b. the marginal cost of additional passengers is very small. c. additional passengers add little to fixed costs. d. such passengers add more to profits than do those with reserved seats.
The following diagram shows the demand curve for neckties. At point a, total expenditure on neckties is:
a. ?$45. b. ?$20. c. ?$9. d. ?$5. e. ?$26.
A slowing U.S. economy and increased enforcement of immigration laws will reduce ________ factors for Mexican immigration to the United States
A) demand growth B) demand pull C) supply push D) supply growth E) network