The New York Times reported in August 1997 that over one-third of all bottled water sold in the United States is simply filtered tap water. For example, the Everest brand of water comes from the municipal water supply of Corpus Christi, Texas. Explain
why consumers will pay more than $1 for a quart of water, when they could get basically the same quart directly from the tap for the smallest fraction of a penny.
Successful marketing campaigns have convinced customers that bottled water is characteristically different
from tap water. These customers view tap water as a poor substitute for bottled water, and are willing to
pay a premium for bottled water. It's product differentiation, even if it's just plain old water.
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If net exports are negative
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.
The see-through office building, and the boarded-up factory outlet mall may be attributed to
A) changing conditions which no longer justify the project for which the buildings were produced. B) deregulation of S & Ls. C) extreme business optimism. D) all of the above.
In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate b. each firm is ignorant of the market wage rate c. the demand for labor is a derived demand d. each firm hires a very small portion of the labor services available e. the wage rate is regulated by the government
The banking system’s ability to __________ money depends on people re-depositing the money that they receive into the banking system.
a. create b. spend c. save d. grow