Predatory pricing is used primarily to:
A) discourage new firms from entering a market.
B) reduce (limit) the profits of all of the firms in the industry.
C) drive other firms out of a market.
D) establish a minimum price all of the firms in the market will charge.
C
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The balanced budget multiplier is equal to
a. 1/(1 – MPC) b. 1/(1 – MPC) + –MPC/(1 – MPC) c. MPC/(1 – MPC) d. (1 – MPC)/MPC e. 2
If the dollar depreciates, it can be said that
a. foreign countries no longer respect the United States. b. it falls in value within the United States. c. it takes fewer dollars to buy foreign currencies. d. other currencies appreciate.
Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doctor visits and the bill charged by the doctor for 6 visits is $360, the portion of this cost covered by a third-party payer is:
A. $300. B. $60. C. $420. D. $360.
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
A. the development of strong labor unions B. a sharp increase in the legal minimum wage C. an increase in expenditures on education and capital investment D. rapid growth rate of the money supply