Which of the following is an example of limit pricing?
A. In order to buy Microsoft Windows, you must also purchase Internet Explorer.
B. Bus rides are cheaper for senior citizens than for other people.
C. Prices are set low enough to drive other firms out of a market.
D. Prices are set low enough to prevent other firms from entering the market.
Answer: D
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According to Keynes's theory of liquidity preference, velocity increases when
A) income increases. B) wealth increases. C) brokerage commissions increase. D) interest rates increase.
Sovereign debt crisis, a short-run phenomenon, may lead to the long-run consequence of debt ________
A) intolerance B) distortion C) seignorage D) repudiation
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.
If Marginal cost is lower than Average Cost (AC), average cost is
a. falling b. rising c. constant d. none of the above