What could be a potential explanation for a firm selling virtually identical products under different brands?
A) Consumers are well informed about the quality of the products.
B) Consumers believe that the products' quality is similar and thus firms are able to price discriminate.
C) Consumers always favor private-label brands.
D) Consumers believe that the products' quality differs and thus firms are able to price discriminate.
D
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If you expect the inflation rate to be 4 percent next year and a one year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is
A) -3 percent. B) -2 percent. C) 3 percent. D) 7 percent.
Refer to Table 16.1. Which of the following statements is TRUE?
A) Guatemala has an absolute advantage in producing tomatoes. B) Guatemala has an absolute advantage in producing beer. C) Guatemala has a comparative advantage in producing beer. D) Guatemala has a comparative advantage in producing tomatoes. E) all of the above
If the economy experiences a recession, the federal government's tax receipts will
A. decrease. B. remain the same. C. fall to zero. D. increase.
An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to assemble a scholarly answer, the professor should take which steps? a. Develop a hypothesis, test the proposition by engaging in empirical analysis, and examine the data to see if it fits with the facts. b. Gather data on crude oil prices and
seemingly unrelated variables in order to look for associations, then formulate a hypothesis based on those unexpected associations. c. Ask people in Alaska why they are not purchasing oil. d. None of the above. The oil industry is controlled by a cartel; therefore price changes in the industry cannot be explained using economic theories.