The primary purpose of measuring the overall level of prices in the economy is to
a. allow for the measurement of GDP.
b. allow consumers to know what kinds of prices to expect in the future.
c. allow for the comparison of dollar figures from different points in time.
d. allow for the comparison of dollar figures from the same point in time.
c
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Refer to Figure 14-1. If Lexus lowers its price, will this deter BMW from entering the market?
A) Yes, because BMW will make a smaller profit than Lexus if it chooses to compete. B) No, because BMW will be able to break Lexus' first-mover advantage. C) No, because BMW will still make a profit of $120 if it competes with Lexus. D) Yes, because BMW stands to lose $100 million if it competes with Lexus.
Country risk analysis involves a consideration of only economic factors
Indicate whether the statement is true or false
When the government intervenes in markets with bystanders, why does it do so?
a) to protect the interests of bystanders b) to make certain all benefits are received by market participants c) to better coordinate the actions of buyers and sellers d) to increase production when negative externalities are present
The academic ability of women studying to be teachers has declined in recent years because
A. the rate of pay for female teachers is much less than for equally-qualified male teachers. B. of the increased outsourcing of teaching jobs. C. bright women have other, more economically-lucrative opportunities. D. the nominal rate of pay for all teachers has decreased.