Which of the following is an example of limit pricing?
A. In order to buy Microsoft Windows, you must also purchase Internet Explorer.
B. Bus rides are cheaper for senior citizens than for other people.
C. Prices are set low enough to drive other firms out of a market.
D. Prices are set low enough to prevent other firms from entering the market.
Answer: D
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Which of the following increases the quantity of money demanded?
A) a fall in the nominal interest rate B) a rise in the nominal interest rate C) a rise in the inflation rate D) a rise in the real interest rate E) an increase in real GDP
How are total and marginal utility related?
What will be an ideal response?
Unlike national income, personal income
a. includes retained earnings, indirect business taxes, corporate income taxes and social insurance contributions, and excludes interest and transfer payments received by households from the government. b. excludes retained earnings, indirect business taxes corporate income taxes, social insurance contributions and interest and transfer payments received by households from the government. c. excludes retained earnings, indirect business taxes, corporate income taxes and social insurance contributions, and includes interest and transfer payments received by households from the government. d. includes retained earnings, indirect business taxes, corporate income taxes, social insurance contributions, and interest and transfer payments received by households from the government.
In the long run, if the Fed increases the growth rate of the money supply,
a. inflation will be higher. b. unemployment will be lower. c. real GDP will be higher. d. All of the above are correct.