The situation where marketers introduce products that are not designed to sell, but are designed to manipulate consumers into choosing a similar, but superior product is known as:
A. the decoy effect.
B. the anchoring effect.
C. bundling.
D. mental accounting.
Answer: A
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A production function: a. shows the relationship between a firm's costs and revenues
b. shows the relationship between production and profits. c. shows the relationship between inputs and the maximum output that can be produced from those inputs. d. shows the relationship between variable inputs and fixed inputs.
International equilibrium occurs if the quantity of imports demanded by one country is equal to the quantity of exports supplied by the other country
a. True b. False Indicate whether the statement is true or false
If a nation does not have an absolute advantage in producing anything, it a. can have no comparative advantage either
b. will have a comparative advantage in the activity in which its disadvantage is the least. c. will benefit if it refuses to trade. d. will export raw materials and import finished products.
A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits. B) a subsidy to consumers of the good that provides external benefits. C) an effluent fee charged to producers of the good that provides external benefits. D) regulations aimed at reduced production by sellers of the good that provides external benefits.