You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time,
a. you should price the warranty at less than 2% of the product price
b. you should price the warranty at exactly 2% of the product price
c. you should price the warranty at more than 2% of the product price
d. Cannot tell from this information
c
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Goods that are produced this year, stored in inventories, and then sold to consumers next year
A) count in this year's GDP. B) count in next year's GDP. C) count in both this year's and next year's GDP. D) are not counted as a part of GDP.
Which of the following statements is not correct?
a. Welfare programs may encourage illegitimate births. b. The decline in welfare benefits since the 1970s has been associated with a decline in the percentage of children living with a single parent. c. Welfare programs may reduce incentives for people to work. d. A negative income tax program uses tax revenues collected from high-income families to provide cash subsidies to low-income families.
Fiscal policy involves
A. changing the money supply to change aggregate demand. B. printing money, borrowing, or taxing to cover government spending. C. changing government spending or taxes to increase aggregate demand. D. state and local authorities, not the federal government.