Trade restrictions can prevent purchasing power parity from holding because:
A. the time and energy of importation paperwork can add to the cost of the good sold.
B. tariffs can add to the cost of the good sold.
C. they can add costs to the selling price because they add to the seller's cost.
D. All of these statements are true.
D. All of these statements are true.
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Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Which of the following product pairs would NOT be good candidates for price discrimination through tying?
A) Razors and razor blades B) Ink-jet printers and ink cartridges C) Pencils and paper D) Cellular telephones and cell phone service
If people generally believe that "you get what you pay for," it is reasonable for them to:
A. make every effort to get complete information about a product before making a purchase to make sure that the purchase is optimal. B. assume that a cheaper brand is always a better deal than expensive brands. C. assume that an expensive item is of higher quality, creating the possibility of an upward-sloping demand curve. D. assume that an expensive item is of higher quality, which eliminates the possibility of an upward-sloping demand curve.
The market system does not produce public goods because:
A. there is no need or demand for such goods. B. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them. C. public enterprises can produce such goods at lower cost than can private enterprises. D. their production seriously distorts the distribution of income.