Vertical contracts between manufacturers and retailers often aim to
a. Prevent the manufacturer from upstream price discrimination
b. Reward the retailer for undertaking the risk inherent in introducing a new product
c. Serve as a "signal" of the retailer's belief of the likely success of his product
d. All of the above
b
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If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is
A) 0.02 percent. B) 100 percent. C) 102 percent. D) 2.0 percent. E) unable to be determined without knowing potential GDP.
What are the four types of bias that economist Bryan Caplan believes voters bring with them when they vote? Briefly explain each of these biases
What will be an ideal response?
A discount shoe manufacturer's advertisement suggests that they are almost as good as the name brands but better value. The shoe manufacturer believes that the advertisement will
a. Make the demand for its product more elastic b. Make his customers more price sensitive c. Cause people to directly compare his product to the name brands d. All of the above
Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1 ) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better. (2 ) Because of long and uncertain time lags, activist monetary policy may be destabilizing rather than stabilizing. (3 ) There is sufficient flexibility in wages
and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP. (4 ) The "same-for-all-seasons" monetary policy is the way to proceed. (5 ) There is evidence that monetary policy in the mid-1970s caused a recession. A) (1), (2), and (3) B) (1), (4), and (5) C) (1 ) and (5) D) (4 ) and (5) E) (1), (3), and (4)