Adaptive expectation is a theory in which people look at current economic changes and adapt their beliefs and behavior almost immediately to such changes
a. True
b. False
Indicate whether the statement is true or false
False
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To have more consumer goods in the future, we must
A) produce more capital goods today. B) lower current income. C) get government involved in the production process. D) stop producing all goods today.
Tariffs discourage imports by making imported products more expensive to consumers
a. True b. False Indicate whether the statement is true or false
Which of the following is NOT an example of the hurdle method of price discrimination?
A. Permanently reducing all prices by 10 percent. B. Charging less for airline tickets if the trip includes a Saturday night stayover. C. Offering a mail-in rebate. D. Giving a discount on movie tickets to people with a student ID.
In many high-tech industries in the economy, such as computers, medical equipment, and automobiles,
A. price competition is utilized by firms more than innovation to compete with rivals. B. firms compete on the basis of innovation only; never engaging in price competition. C. innovation is utilized by firms to compete with rivals more than price competition. D. firms use price competition only; never engaging in innovation to compete with rivals. E. firms utilize innovation and price competition equally to compete with rivals.