If bond prices decrease, then the
A. transactions demand for money will decrease.
B. interest rate increases.
C. interest rate decreases.
D. transactions demand for money will increase.
Answer: B
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Consumers value the product-specific services for a new smartphone at $30 and the marginal cost to the retailers for providing the product-specific services is $40. From the manufacturer's perspective, a resale price maintenance agreement ________ be successful as it will ________ the equilibrium quantity sold.
A) will not; decrease B) will; increase C) will not; increase D) will; decrease
Indirect price discrimination differs from direct price discrimination because
a. In direct price discrimination high value consumers can sometime enjoy the benefits of a low-values customer b. In Direct price discrimination firms do not have to worry about cannibalizing c. In direct price discrimination there is a risk of creating profitable entries for rival but for indirect price discrimination, this can be avoided d. There is no difference between the two
If government adhered strictly to the idea of an annually balanced budget, then during a recession,
A. both expenditures and tax rates would have to be decreased. B. both expenditures and tax rates would have to be increased. C. expenditures would have to be increased and/or tax rates decreased. D. expenditures would have to be reduced and/or tax rates increased.
Which statement is true?
A. Shutting down is a long run option. B. Going out of business is a short run option. C. Continuing to operate is a short run option.