When Coca Cola introduced a new, low-calorie version of Coca Cola called C2, despite a major marketing effort, sales of C2 were weak and many doubted that the product would last. Coke's experience with C2 illustrates the economic concept of:
A. producer sovereignty.
B. consumer sovereignty.
C. market failure.
D. limited liability.
Answer: B
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When we hear on the news, "The Fed has increased interest rates today," the Fed has most likely
A) raised the required reserve ratio. B) sold government bonds. C) lowered the discount rate. D) bought government bonds.
When the United States sends money to Indonesia to help tsunami survivors, in what account is this transaction recorded?
A) the current account B) the capital account C) the financial account D) the foreign exchange account
Injections:
a) Decrease aggregate demand b) Always equal savings c) Always equal national income d) Include investment and export spending
Refer to the following graph.
With a tariff of $10 a blouse on imported silk blouses from China, the revenue the government would collect from the import of silk blouses from China would be:
A. $20,000. B. $2,800. C. $7,000. D. $0.