After having a monopoly in the diamond market for many years, by 2000, De Beers faced competition from other companies. To maintain its market share, De Beers
A) began buying so-called "blood diamonds" in order to keep these diamonds out of the control of other diamond companies.
B) adopted a strategy of differentiating its diamonds. Each of its diamonds is now marked with a microscopic brand.
C) bought diamond mines in Canada and Russia that had been its competitors.
D) lowered the prices of its diamonds to make the market appear less profitable to potential competitors.
Answer: B
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Do people's incomes result from the choices they make?
A) Yes, and from no constraints whatsoever. B) Yes, but from among a limited set of options. C) No, because obviously no one would choose to be poor. D) No, because others often will not let people have what they choose.
Author A accepts a $5,000 advance and a 10% royalty after 5,000 books are sold. Author B foregoes the advance and negotiates for a 15% royalty on all books sold. Author C decides to self publish his book and keep 50% of all sales revenue
Which of these authors expects to sell the fewest books? A) Author A B) Author B C) Author C D) They are all equally likely.
An example of a way employers can minimize moral hazard is to:
A. monitor employees' computer activity. B. offer bonuses for consistent productivity. C. videotape the workplace. D. All of these are ways to minimize moral hazard.
Macroeconomics is mostly focused on:
A. the individual markets within an economy. B. only the largest industries in the economy. C. the economy as a whole. D. why specific businesses fail.