McDonald's and its major competitors compete based:
A) only on the price.
B) only on the basis of product characteristics.
C) on both the price and product characteristics.
D) none of the above because the fast-food industry is perfectly competitive.
C
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When the Fed conducts an open market operation by purchasing securities from a bank, ________
A) public holdings of securities increase B) the bank's deposits increase but its reserves do not change C) the bank's deposits increase but its reserves decrease D) the bank's reserves increase
When using the economic efficiency approach to controlling air and water pollution, the government
a. forces each firm to produce emissions in the most cost efficient manner irrespective of its cost structure b. offers each firm the flexibility to reduce emissions in the most cost effective manner, given its unique cost structure c. offers each firm the option of choosing between the cost minimizing emission level and the profit maximizing emission level d. provides each firm with some fixed rules and then requires them to maximize profits given these fixed rules e. offers each firm the option of using marginal cost pricing and average cost pricing when determining the optimum emissions levels
Government outlays include all of the following EXCEPT
A) dividend payments. B) spending on the military. C) electricity for the Capital Building. D) letterhead stationery.
The undesirable effects of bracket creep can be eliminated by indexing marginal tax rates.
Answer the following statement true (T) or false (F)