An economist observes that a pharmaceutical company is sponsoring a diabetes clinic and providing free medications. She concludes that the pharmaceutical company is concerned not only about profits but also about fair distribution of drugs to those who need them. This economist is most likely a(n):
A. traditional economist.
B. irrational economist.
C. engineering economist.
D. behavioral economist.
Answer: D
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Economic freedom:
a. is the right to own property. b. means not having to pay taxes. c. is absent in rich countries. d. affects only poor people. e. is the ability to engage in voluntary trade.
Answer the following statement true (T) or false (F)
1) A firm's optimal amount of R&D occurs where the interest-rate cost of funds and the expected rate of return are equal. 2) Successful new products enable consumers to increase the total utility they obtain from a specific amount of their total spending. 3) Process innovation is represented as a downward shift in a firm's total product curve and its average total cost curve. 4) The theory that R&D expenditures as a percentage of firms' sales first rise, reach a peak, and then fall with increases in industry concentration is called the inverted-U theory of R&D. 5) The process by which new firms and new products destroy existing dominant firms and their products is called creative destruction.
Assume that a person only purchases two goods, food and clothing, and has a fixed budget constraint. Both goods are normal goods. If the price of food decreases, what will happen to the consumption of clothing based on the income effect?
Please provide the best answer for the statement.
What is the primary difference between bundling and tie-ins?
A) Bundling is typically a one-off purchase. B) Contractual arrangements. C) Tie-ins are one-off purchases. D) Bundling is illegal and tie-ins are legal.