If a firm engages in a low-price guarantee, that firm picks a:
A. high price but instantly switches to a low price if its competitors choose a low price.
B. low price but instantly switches to a high price if its competitors choose a low price.
C. high price but instantly switches to a low price if its competitors choose a high price.
D. low price no matter what the competition does.
Answer: A
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The United States is currently a net debtor nation. This means that
A) U.S. consumers have a great variety of foreign goods available to them. B) the U.S. economy is in serious trouble if government policies don't change quickly. C) capital outflows from the U.S. are greater than inflows. D) the U.S. is seen as a poor investment by foreign citizens and firms.
An individual paying twice as much in Social Security taxes over her lifetime as another individual would receive at least twice as much in Social Security benefits
a. True b. False
The "Capital Asset Pricing Model" measures the risk premium for a capital investment by comparing the expected return on that investment with the
A) average return on other investments of similar risk. B) average return on the past several years' investments made by the firm. C) expected return on the entire stock market. D) expected return on the government bond market. E) expected return on the corporate bond market.
Suppose the market for grass seed is expressed as Demand: QD = 100 - 2p Supply: QS = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at 1. Yet, with the new supply curve, consumers pay a larger share of a specific tax. Why?
What will be an ideal response?