The prices paid to a productive resource usually perform an incentive function except with what resource?
A. Land
B. Labor
C. Capital
D. Entrepreneurial ability
A. Land
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When one firm lowers its price, its gain in sales at the expense of other firms is known as
a. administered sales. b. the substitution effect. c. the collusive effect. d. product differentiation.
An economist who studies the sales and profits of a large corporation would be classified as a(n)
a. macroeconomist. b. equity analyst. c. stock broker. d. microeconomist. e. social economist.
From the long-run perspective of economic growth, saving
A. Shifts the production possibilities curve inward. B. Is a basic source of investment financing. C. Threatens growth because of the paradox of thrift. D. Causes the long-run aggregate supply curve to shift to the left.
An article on how prices in South Bend, Indiana rise during Notre Dame home football games noted: "For the Sept. 16 game against the University of Michigan, the South Bend Marriott is charging $649 a night for a double room
The Marriott's regular weekend price is $149 a night." Which of the following statements is true? A) The Marriott has adopted this pricing strategy to capitalize on arbitrage profits. B) There is no evidence of price discrimination; the Marriott is responding to increased demand for hotel rooms in the face of constant supply. C) The Marriott is practicing first-degree price discrimination by charging what the market will bear. D) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.