The fear of unwanted price wars may explain why many firms are reluctant to:
A. reduce wages when a decline in aggregate demand occurs.
B. reduce prices when a decline in aggregate demand occurs.
C. expand production capacity when an increase in aggregate demand occurs.
D. provide wage increases when labor productivity rises.
B. reduce prices when a decline in aggregate demand occurs.
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To avoid accidents, the government of Richland does not allow boating in lakes during rainstorms. This is an example of ________
A) consumer sovereignty B) consumerism C) bureaucratic redtapism D) paternalism
If two large firms from different industries merge,
a. industry concentration rises b. industry concentration falls c. the total assets of the top 200 firms in the country will stay the same d. industry concentration rises in one market and falls in the other e. industry concentration is not affected
The total expenditure on goods and services in a country must be the same as the total income earned from selling goods and services because:
a. the government's annual budget has to balance. b. net exports in an economy is usually zero. c. one sector's expenditures are another sector's income. d. total investment in an economy always equals total saving. e. the sum of consumption spending and saving is zero.
The Personal Consumption Expenditure Index is also known as the GDP deflator
a. True b. False Indicate whether the statement is true or false