A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company decides to sell the drug at $5,000 but requires the patients to purchase periodic blood testing from them for $5,000 . This is an example of
a. Tying
b. Bundling
c. Fraud, the company is not allowed to sell for any higher than the regulatory price
d. Both A&B
a
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Classical economics refers to the perspective that the business cycle can be explained
A) using equilibrium analysis. B) using disequilibrium analysis. C) by long-run macroeconomic fluctuations. D) by short-run macroeconomic instability.
Fixed exchange rates are rates set by government decisions and maintained by government actions.
Answer the following statement true (T) or false (F)
The Federal Reserve is anticipating a contractionary period in the economy. The Fed decides to engage in open market operations to stimulate the economy. This action is
A. passive policymaking. B. nondiscretionary rule. C. the monetary rule. D. active policymaking.
Positive economics seeks to understand behavior, but not make judgments.
Answer the following statement true (T) or false (F)