The Big Mac index is a measure of how well the purchasing power parity theory works.
Answer the following statement true (T) or false (F)
True
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Which of the following antitrust laws broadened the list of illegal price discrimination practices and is often called the "Chain Store Act"?
a. The Clayton Act. b. The Federal Trade Commission Act. c. The Robinson-Patman Act. d. The Celler-Kefauver Act.
Entrepreneurship refers to
What will be an ideal response?
ABC Light Bulbs has a monopoly on a new style of LED lighting. Right now, they sell 5 million bulbs at a unit price of $10. If they lower their price to $8, they will sell 7 million units. What is the price effect in this scenario?
a. ABC is unable to influence the price of its products if output exceeds 7 million bulbs. b. ABC earns an additional $18 for every bulb it sells over 5 million. c. ABC loses $10 million in revenue by selling at a lower price to its original customers. d. ABC gains $6 million in revenue by selling more bulbs to new customers.
For this question, assume productivity has been increasing by 5% per year. Also assume that workers' expectations of productivity growth adjust slowly over time. For this economy, a reduction in productivity growth from 5% to 2% will most likely cause which of the following to occur?
A) an increase in the natural rate of unemployment B) a reduction in the real wage C) an increase in the markup over labor costs D) all of the above E) none of the above