Selling at a price that is only slightly above the firm’s cost of production is called predatory pricing.
Answer the following statement true (T) or false (F)
False
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Which of the following are primarily macroeconomic topics and which are primarily microeconomic topics?
a. college tuition rates b. farm subsidies c. national income d. automobile prices e. air traffic congestion f. economic recession
A problem with using fiscal policy to fine-tune the economy is that
A) agreeing on the appropriate fiscal policy is time consuming. B) fiscal policy impacts the economy too fast. C) fiscal policy impacts only urban areas of the nation. D) fiscal policy impacts only the largest states in the nation.
Income elasticity is defined as the
A) percentage change in the quantity demanded of a good resulting from a change in income. B) percentage change in the demand of a good resulting from a one percent change in income. C) change in quantity demanded resulting from a change in income. D) percentage change in the quantity demanded of a good resulting from a one percent change in income.
A leftward shift of the demand curve results in: a. increase in equilibrium price
b. increase in quantity. c. decrease in both equilibrium price and quantity. d. decrease in quantity and an indeterminate equilibrium price.