Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a maximum retail price
b. providing an exclusive contract to a single retailer in a market
c. preventing retailers from compensating sales staff for demonstrating the product
d. eliminate manufacturer staff that was demonstrating the product in stores
b
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Which of the following is a social insurance program?
a. Medicaid b. Food stamps c. Social Security d. Temporary Assistance for Needy Families e. FDIC
The primary benefit of monetary exchange compared to barter exchange is: a. the possibility of tracking trade for tax purposes
b. increased time devoted to finding trade partners. c. increased time devoted to shopping for what we want. d. increased efficiency in arranging transactions.
In what type of exchange rate system is the level of official reserves the most important?
A. Reserves are equally important in all systems B. A partially-flexible exchange rate system C. A fixed exchange rate system D. A flexible exchange rate system
You spend $150 every month planting flowers in your front yard. Your neighbor has told you that she derives $20 a month in enjoyment from being able to look at your beautiful flowers. Which of the following is true?
A. You should refuse to spend anything on flowers unless your neighbor pays you $20 a month. B. If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be less than $150 a month. C. If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be greater than $150 a month. D. You are spending too much on flowers, because your neighbor derives only $20 worth of benefits.