Roberto consumes Coke exclusively. He claims that there is a clear taste difference and that competing brands of cola leave an unsavory taste in his mouth. In a blind taste test, Roberto is found to prefer Coke to store-brand cola eight out of ten times. The results of Roberto's taste test would refute claims by critics of brand names that
a. consumers are always willing to pay more for brand names.
b. brand names cause consumers to perceive differences that do not really exist.
c. consumers with the lowest levels of income are the most likely to be influenced by brand name advertising.
d. brand names are a form of socially efficient advertising.
b
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To combat inflation, Congress and the president should
A) increase transfer payments. B) decrease taxes. C) decrease government spending. D) raise interest rates.
A major problem with household data is that:
a. the income of the households vary greatly. b. the households usually vary in their consumption patterns. c. the households usually comprise of only one individual. d. collecting data from the households is highly inconvenient. e. the number of persons per household varies greatly.
Net exports is the key to the equality of aggregate expenditures and aggregate income.
Answer the following statement true (T) or false (F)
The three duties of government, according to Adam Smith, are (1) _____, (2) _____ and (3) _____.
Fill in the blank(s) with the appropriate word(s).