Before the breakup of AT&T several years ago, profits on long-distance calls offset losses on basic residential service. This practice is known as
A. abuse of monopolistic power.
B. cream skimming.
C. cross-subsidization.
D. the Ramsey rule.
Answer: C
You might also like to view...
The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) an interest rate panic. B) the Taylor rule. C) a zero-sum game. D) a liquidity trap.
Which of the following is an example of a regional currency arrangement?
A) exchange rate union B) currency cartel associations C) free-trade zones D) most-favored nation status E) agreement on commercial trade
Why do individuals demand health insurance? Does the health insurance provided through most employers more or less than people would get if purchased on their own? Why
What will be an ideal response?
The share of new loans with a down payment of 5 percent or less extended by Freddie Mac and Fannie Mae
a. declined substantially after 1999. b. rose from 4 percent in 1998 to 12 percent in 2003 and 23 percent in 2007. c. rose from 4 percent in 1998 to 23 percent in 2002, but declined to less than 10 percent in 2007. d. never exceeded 10 percent of the new loans financed.