Which of the following statements is true about productive inefficiency
What will be an ideal response?
Productive inefficiency implies that it is possible to produce more of one good and no less of another, even without additional resources.
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A company which charges a lower price than may be indicated by economic analysis to gain a foothold in the market is practicing
A) price skimming. B) psychological pricing. C) penetration pricing. D) prestige pricing.
One complication in the process of reducing inflation by creating recessions is that the price level
a. adjusts more quickly to recessionary gaps than to inflationary gaps. b. does not apply as it does in inflationary gaps. c. always rises. d. rarely falls.
Jerry has $50,000 in his savings account and the average new car price is $23,000. Does Jerry have a demand for a new car?
A) Yes, since Jerry can afford a new car. B) Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car. C) Yes, since Jerry's savings is more than double the average new car price. D) none of the above
To grow and prosper, less-developed countries must not:
A. invest in human capital. B. build a strong infrastructure. C. shift resources out of the production of consumer goods and into the production of capital goods. D. shift resources out of the production of capital goods and into the production of consumer goods