If the price of potatoes is reduced, consumers likely buy
A. significantly more potatoes.
B. significantly fewer potatoes.
C. roughly the same quantity of potatoes.
D. an unknown quantity of potatoes; in this situation, consumers’ actions cannot be predicted.
Answer: C
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As part of the "exchange rate effect of monetary policy," a lower money supply causes a __________ interest rate and thus __________ of the domestic currency
A) higher; appreciation B) higher; depreciation C) lower; appreciation D) lower; depreciation
This agency is responsible for regulating the quality and safety of foods, health and medical products, pharmaceuticals, cosmetics, and animal feed
A) Environmental Protection Agency B) Food and Drug Administration C) Equal Employment Opportunity Commission D) Federal Trade Commission
Which of the following are ways to sell a customer additional units without dropping the price on previous purchases
a. Offer quantity discounts b. Offer two-part pricing ex: membership fees c. Bundle the goods together d. All of the above
The only item which would be consistent with a decreased likelihood of cartel formation for production of a product is
a. patent protection b. price inelastic demand c. many producers d. income elastic demand e. limited market entrance