An example of vertical foreclosure is when a firm:
A. merges with a rival firm with the intention of eliminating the rival firm's product from the market.
B. merges with a rival firm with the intention of eliminating the rival firm's product from the market and that controls an essential upstream input refuses to sell to other downstream firms that need the input.
C. temporarily prices below its marginal cost to close competitors out of the market.
D. that controls an essential upstream input refuses to sell to other downstream firms that need the input.
Answer: D
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Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used
Indicate whether the statement is true or false
Leontief reconciled his results by arguing that
A) American labor is more efficient than foreign. B) American capital is more efficient than foreign. C) Foreign capital is more efficient than American. D) Foreign labor is more efficient than American.
In a public goods context, it is difficult to measure its impact on real income because
A. public goods are generally free to the public. B. they make up a small percentage of total GDP. C. people do not reveal how they value public goods. D. inflation decreases the value of the good.
In periods of high inflation,
a. people want to hold on to as much money as possible. b. the purchasing power of money is decreasing. c. nobody wants to work and earn income. d. low nominal interest rates are likely to result. e. nobody wants to buy goods and services.