Which of the following is an example of a tie-in sale?
A. In order to buy Dell Computers, you must also buy Microsoft Windows to get the warranty.
B. Bus rides are cheaper for senior citizens than for other people.
C. Two companies merge to form one company.
D. Prices are set just low enough to prevent other firms from entering the market.
Answer: A
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The price effect is equal to the
A) substitution effect. B) substitution effect plus the income effect. C) marginal rate of substitution minus relative prices. D) substitution effect minus the income effect.
A jurisdictional dispute means that
A) members of a union disagree on the outcome of union elections. B) a higher court reversed the decision of a lower court in a case brought by a union. C) a union leadership and membership cannot agree on an issue. D) two unions disagree on which should represent workers in a particular industry.
A trade deficit involves:
a. net flows of goods from foreign countries to the domestic government. b. net money flows from the foreign firms to the domestic government. c. net money flows from the domestic firms to the domestic government. d. net money flows from the foreign firms to the domestic firms. e. net flows of goods from foreign countries to the domestic firms.
The basic difference between a tariff and quota is that:
a. a quota can be imposed both on imports and exports, whereas a tariff can be imposed only on imports. b. a quota yields revenue to the government, whereas a tariff does not yield any revenue. c. a tariff reduces the import of the goods with greater certainty than quota as the amount of import restricted by quota depends on the price elasticity of demand for importable. d. a tariff is a quantitative restriction on imports, whereas a quota is an import duty. e. a tariff raises the price of the product only in the domestic market, whereas with a quota, both domestic and foreign producers receive a higher price.