The Microsoft Corporation was sued by the government for all but which one of the following antitrust violations?
A. Stealing competitors' secrets.
B. Discouraging computer manufacturers from installing any operating system other than Microsoft's.
C. Buying out potential competitors.
D. Bundling software.
Answer: A
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In a perfectly competitive market, firms in the long run earn zero economic profits. Why?
What will be an ideal response?
The absolute value of the price elasticity of demand for telescopes is 1.5. Therefore, telescopes can be classified as a luxury
Indicate whether the statement is true or false
In the short run, an unanticipated increase in the money supply will exert its primary impact on
a. output and employment rather than on prices. b. prices; output and employment will be largely unaffected. c. interest rates; rising interest rates will stimulate additional saving. d. prices, if the economy operates at an output level below its long-run supply constraint.
The distinction between real and nominal interest rates:
A. makes it easier to assess the impact of monetary policy. B. does not affect the assessment of monetary policy since real interest rates are observable. C. makes it harder to assess the impact of monetary policy. D. does not affect the assessment of monetary policy since nominal interest rates are observable.