The practice of firms temporarily reducing prices in order to eliminate competition is called:
a. competitive pricing.
b. predatory pricing.
c. discount pricing.
d. strategic pricing.
b
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In order for the government to increase spending, it must increase taxes to finance that spending
a. True b. False Indicate whether the statement is true or false
Which of the following is a criterion for determining whether a foreign nation is dumping?
a. The good is not produced at home. b. The good is selling below the price in the exporting nation. c. The good is priced below average total cost. d. The good is selling below the price in the exporting nation or is priced below average total cost.
If a person does not have to pay more than $3,000 in a year for health-care expenses, this is called their
A. co-payment. B. lifetime maximum. C. maximum out-of-pocket. D. deductible.
The government imposes a maximum price on apartments that is above the equilibrium price. You accurately predict that
A. the law will have no economic impact. B. landlords are less likely to do routine maintenance work in the apartments. C. renters will find that landlords start offering to furnish the apartments. D. the law will create a surplus of apartments.