Vertical contracts between manufacturers and retailers often aim to
a. Prevent the manufacturers from upstream price discrimination
b. Reward the manufacturer for undertaking the risk inherent in introducing a new product
c. Serve as a "signal" of the manufacturer's belief of the likely success of his product
d. All of the above
c
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During inflation, the optimal discretionary fiscal policy would be _____
a. to decrease taxes b. to increase government spending c. to decrease the reserve ratio d. to increase taxes e. to decrease the market interest rate
If a increase in income decreases the demand for a good, then the good is a(n)
a. substitute good. b. complementary good. c. normal good. d. inferior good.
In the 1970s, the Fed accommodated a(n)
a. adverse supply shock and so contributed to higher inflation. b. adverse supply shock and so contributed to lower inflation. c. favorable supply shock and so contributed to higher inflation. d. favorable supply shock and so contributed to lower inflation.
We would expect an industry to expand if firms in that industry are:
A. earning normal profits. B. earning economic profits. C. breaking even. D. earning accounting profits.