When Microsoft put together a set of products with the Windows operating system, it was practicing
A) bundling.
B) tie-in sales.
C) versioning.
D) compacting.
Answer: A
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Which of the following policies would be expected to increase private saving?
A. Increasing the tax rate on capital gains B. Replacing the income tax with a consumption tax C. Reducing the size of down payments needed to buy a house D. Providing more generous Social Security retirement benefits
If the government wants to regulate a natural monopoly while ensuring the firm does not earn profits or require subsidies, the government will force the firm to set price equal to
A) average cost. B) marginal cost. C) marginal revenue. D) None of the above.
Because members of a cartel have a strong incentive to cheat on production and pricing agreements, these groups often develop complicated enforcement arrangements.
Answer the following statement true (T) or false (F)
A PPF can be used to illustrate:
(a) Producer Profit; (b) Opportunity Cost; (c) Market Equilibrium; (d) None of the above.