When a firm prices its goods below the marginal cost to drive away competitors, it is referred as
A) price skimming.
B) limit pricing.
C) penetration pricing.
D) predatory pricing.
D
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Which of the following types of expenditure is most likely NOT determined by an accelerator model?
A) consumer durable spending B) inventory investment C) residential housing construction D) consumer spending on food
________ is a company that obtains funds primarily from wealthy investors and uses the funds to make complicated, often risky investments
A) A mutual fund B) A pension fund C) A hedge fund D) An investment bank
An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available. B) no one can be made better off without making somebody else worse off. C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain. D) in a particular production process one gets the maximum output for a given input.
Disinflation is a
a. reduction in the price level, whereas deflation is a reduction in the rate of inflation. b. reduction in the rate of inflation, whereas deflation is a reduction in the price level. c. slow reduction in the price level, whereas deflation is a rapid reduction in the price level. d. rapid reduction in the price level, whereas deflation is a slow reduction in the price level.