Before the breakup of AT&T several years ago, profits on long-distance calls offset losses on basic residential service. This practice is known as
a. abuse of monopolistic power.
b. cream skimming.
c. cross-subsidization.
d. the Ramsey rule.
c
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Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because
A) they do not want to offend their employers who want them. B) they believe the restrictions will protect their jobs. C) politicians lobby to convince workers the restrictions will make them better off. D) they don't understand that the restrictions will threaten their jobs.
The Fed's monetary policy tools
A) have proven to be of little value in helping the Fed to achieve its monetary policy goals. B) have allowed the Fed to achieve its monetary policy goals directly. C) have allowed the Fed to achieve its monetary policy goals indirectly. D) are no longer as effective in achieving its monetary policy goals, due to restrictive legislation passed by Congress in the 1990s.
The demise of debt peonage in the post-Civil War South was partly due to all of the following except:
a. the arrival of the boll weevil. b. improved transportation and the growth of mail-order houses. c. increased urbanization and industrialization. d. federal land reform legislation that redistributed the ownership of southern land.
When demand is elastic
A. changes in price and changes in total revenue move in opposite directions. B. for any change in price, total revenue will not change. C. changes in price and changes in total revenue move in the same direction. D. there is no relationship between changes in price and changes in total revenue.