Which of the following is an example of predatory 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 just high enough to prevent other firms from entering the market.
Answer: C
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In periods when prices are falling, on average,
A) real GDP will grow as fast as nominal GDP. B) real GDP will grow slower than nominal GDP. C) real GDP will grow faster than nominal GDP. D) one cannot calculate real GDP.
How much would be added to this year's GDP if you sold your four-year-old automobile for $4,000 and purchased a two-year-old model from an acquaintance for $10,000
a. nothing b. $6,000 c. $10,000 d. $14,000
If interest rates increase, what will happen to the demand for reserves?
A. It will shift outward. B. It will shift inward. C. Nothing, the economy will move to a new quantity demanded. D. It depends on what happens to prices.
Firms are likely to prefer a pollution tax to a command-and-control policy because the command-and-control policy will:
A. increase the costs of production more than a pollution tax. B. result in the price of the good rising more than under a pollution tax. C. result in consumers buying less of the good than under a pollution tax. D. All of these