Tie-in sales:
A. are legal under the Clayton Act.
B. are the same as predatory pricing.
C. were banned under the Hart-Scott-Rodino Act.
D. are contracts that prevent purchasing one good without purchasing another.
Answer: D
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If marginal revenue is greater than marginal cost, the firm should
A) raise price. B) raise marginal revenue. C) increase its rate of output. D) decrease its rate of output.
Macroeconomics primarily examines: a. the behavior of firms
b. how prices are determined in markets. c. broad issues such as inflation. d. the cost-minimizing conditions for business firms.
The second crisis of economic theory refers to
A. The dominance of Keynesian views in fiscal policy to the exclusion of newer, more enlightened viewpoints. B. The typical fiscal policy trade-off between unemployment and inflation. C. An emphasis on the level of output without concern for the content of output in terms of fiscal policy. D. Our inability to maintain full employment output over any significant period of time.
To fight recession, the government may
A. decrease aggregate demand, which will also lead to lower unemployment rates. B. increase aggregate demand, which will also lead to higher price levels. C. increase aggregate demand, which will also lead to lower price levels. D. decrease aggregate demand, which will also lead to higher unemployment rates.