A health club requires six-months advanced payment. A commuter railroad offers discounted monthly tickets. What do they clearly have in common?
A) They are earning profits.
B) They are selling short.
C) They are exploiting customers.
D) They are facing financial problems.
B
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Outside lags occur because
A) it takes time to identify a problem. B) firms must change investment plans before monetary policy can be effective. C) once changes are finally diagnosed and implemented, policies are immediately effective. D) once a problem is diagnosed, it still takes time to implement policy changes.
In the economic way of thinking, which statement makes the most sense?
A) Costs determine prices. B) Prices determine costs. C) Costs determine demand. D) Demand determines supply.
The investment expenditure component of aggregate demand is also known as:
a. money spent in the stock market. b. spending to repair existing capital goods. c. spending used to enhance human capital. d. spending on new capital goods.
If, in response to an increase in the price of pineapples, the quantity of pineapples demanded decreases, then economists would describe this as
A) an decrease in demand. B) a decrease in quantity demanded. C) a change in consumer income. D) a decrease in consumers' taste for pineapples.