If people are given one of two items of the same value and are given the choice to exchange it:
A. everyone will keep the first item since it was free.
B. most will keep the original item since people tend to value what they have more than a product that they do not.
C. about 50 percent will make the change since half prefer the item they have and half prefer the item they do not have.
D. everyone will trade since people like to trade.
Answer: B
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In order to effectively price discriminate, one requirement is that a seller must be able to:
A. identify customers with different reservation prices. B. reduce costs when producing the discounted item. C. resell the product. D. avoid detection because price discrimination is illegal.
Eurobanks are
A) all European Banks. B) all non American banks. C) banks that accept deposits denominated in Eurocurrencies excluding Eurodollars. D) banks that accept deposits denominated in Eurocurrencies including Eurodollars. E) banks that do not take U.S. dollars.
The Federal Reserve System is divided into how many districts?
A) 1 B) 5 C) 7 D) 12
When the federal government is running a budget deficit,
a. government revenues exceed government expenditures. b. government expenditures exceed government revenues. c. the economy must be in an economic recession. d. the size of the national debt will decline.