What is tying or bundling of goods?
Goods or services are often sold as packages of potentially separable components. For example, customers of General Motors have to buy cars with preinstalled engines built by the company.
You might also like to view...
How does the long-run supply curve differ from the short-run supply curve for a perfectly competitive firm? Explain your answer
What will be an ideal response?
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. Real GDP falls and nominal
value of the domestic currency remains the same. b. Real GDP and nominal value of the domestic currency remain the same. c. Real GDP falls and nominal value of the domestic currency rises. d. Real GDP falls and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.
During periods of hyperinflation, which of the following is the most likely response of consumers?
A. Save as much as possible. B. Spend money as fast as possible. C. Invest as much as possible. D. Lend money.
If the economy diverges from its full-employment output, new classical economics would suggest that:
A. A change in the velocity of money would be all that is needed to return it to its full-employment output B. An improvement in insider-outsider relationships is all that is needed to return it to its full-employment output C. An efficiency wage in the economy would return it to its full-employment output D. Internal mechanisms within the economy would automatically return it to its full-employment output