Which of the following pricing strategies is NOT used in markets with special cost and demand structures?
A. Transfer pricing
B. Cross-subsidization
C. Peak-load pricing
D. Low-price guarantees
Answer: D
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For a ____, if incomes rise and prices do not change, quantity demanded will increase
a. normal good b. inferior good c. Giffen good d. substitute good
Suppose the state of Wyoming passes a law that increases the tax on cigarettes. As a result, smokers who live in Wyoming start purchasing their cigarettes in surrounding states. Which of the following principles does this best illustrate?
a. People respond to incentives. b. Rational people think at the margin. c. Trade can make everyone better off. d. Markets are usually a good way to organize economic activity.
Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7
Refer to Table 23.7. Which of the following statements is false?
A. If aggregate output equals $1000 billion, then aggregate saving equals $100. B. The MPC for this economy is 0.75. C. At an output level of $400 billion, there is a $150 billion unplanned inventory decrease. D. At output levels greater than $800 billion, there is a positive unplanned inventory change.
Free riding is primarily a characteristic of pure private goods
Indicate whether the statement is true or false