The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer controlled rent but force the tenants to rent furniture from them. This is an example of
a. Tying
b. Bundling
c. Exclusion
d. Fraud
a
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The marginal revenue product is: a. the value of all the final goods and services produced by a firm
b. the value that an worker contributes to a firm. c. an increase in the profit of a firm with an increase in the output by one unit. d. the output per unit of worker employed by a firm. e. the value that all the unskilled workers contribute to a firm.
Which of the following is an example of a managed float?
a. The Fed buys or sells U.S. dollars in order to maintain a fixed $1.05 per euro exchange rate. b. The European Central Bank buys or sells euros in order to "peg" the price level. c. The Bank of England buys or sells British pounds in order to maintain a fixed exchange rate with the U.S. dollar. d. The Bank of Japan intervenes in the foreign exchange market to prevent a rapid depreciation of the yen. e. The Bank of Japan intervenes to set the tax rate very close to the tax rates of other countries.
The short-run effects of a favorable supply shock will include
a. an increase in the general level of prices and a decrease in real output. b. an increase in the general level of prices and an increase in real output. c. a decrease in the general level of prices and a decrease in real output. d. a decrease in the general level of prices and an increase in real output.
Suppose an economy produces only iPhones and bananas. In 2010, 1000 iPhones are sold at $300 each and 5000 pounds of bananas are sold at $3 per pound. In 2009, the base year, iPhones sold at $400 each and bananas sold at $2 per pound. For 2010,
a. nominal GDP is $315,000, real GDP is $410,000, and the GDP deflator is 76.83. b. nominal GDP is $410,000, real GDP is $315,000, and the GDP deflator is 130.16. c. nominal GDP is $315,000, real GDP is $410,000, and the GDP deflator is 130.16. d. nominal GDP is $410,000, real GDP is $315,000, and the GDP deflator is 76.83.