The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer the controlled rent, rents furniture to its tenants, but successfully bars delivery from competing
furniture stores. This is an example of
a. Tying
b. Bundling
c. Exclusion
d. Fraud
c
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If you were president of the United States, what would you do to reduce the natural rate of unemployment? Propose at least three different methods
What will be an ideal response?
Which of the following (if any) is not a factor affecting the profit performance of firms:
a. differential risk b. innovation c. managerial skills d. existence of monopoly power e. all of the above are factors
For about the past 45 years, state and local taxes have remained relatively constant as a percentage of GDP.
Answer the following statement true (T) or false (F)
When President Obama took office in January 2009, he pledged to pursue an expansionary fiscal policy to try to pull the economy out of the recession. The next month, Congress passed the American Recovery and Reinvestment Act of 2009, an $840 billion
package of spending increases and tax cuts that was A) the largest fiscal policy action in U.S. history. B) second in size only to the fiscal policy action taken during the Great Depression. C) small in comparison to the actions taken during the recession of 1974-1975. D) roughly equal to the spending increases and tax cuts implemented during the recession of 1980-1982.