The practice of the only seller in a market charging a price at the highest level that would still inflict a loss on a new entrant into the market is called
A) limit pricing.
B) collusive pricing.
C) agile pricing.
D) trigger pricing.
A
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Which of the following is true? a. Sometimes the Fed moves to partly offset or even neutralize the intended effects of fiscal policy changes
b. If a consensus was reached between fiscal and monetary policy makers, you would not expect contractionary fiscal policy and expansionary monetary policy to be adopted at the same time. c. If policymakers' timing is off, expansionary monetary policy could cause an inflation problem rather than reducing a high unemployment problem. d. All of the above are true
A 10 percent increase in the cost of restaurant meals, which are a luxury, will most likely
a. increase the purchase of meals by 10 percent. b. increase the purchase of meals by less than 10 percent. c. decrease the purchase of meals by more than 10 percent. d. decrease the purchase of meals by less than 10 percent.
A 65 percent chance of winning $10 and a 35 percent chance of losing $5 would be classified as a(n)
A. fair gamble. B. worse-than-fair gamble. C. unfair gamble. D. better-than-fair gamble.
Which of the following statements best describes the substitution bias in the construction of the CPI?
A. Not taking into account that consumers alter their buying habits as new products come into being and lifestyles change, for example, the rising popularity of cell phones instead of land-line phones. B. Not accounting for the fact that consumers are effectively getting more product for their money because technological changes have led to improvements in quality and lower production costs over time. C. The failure to recognize that over time consumers alter the goods they buy, switching from relatively high priced goods toward lower-priced alternatives. D. The failure to capture the fact that consumers have made substitutions in their shopping habits: shifting from high-priced department stores to lower-priced discount stores.