An iron and steel manufacturing plant was facing a power crisis on a daily basis. The unit had to stall production for about two hours on an average per day. In order to minimize the loss, the owner decided to invest in a cogeneration unit that would produce enough power to facilitate production during the peak load hours. This action of the manufacturer exemplifies:
A. a monopoly-pricing strategy.
B. a forward or downstream integration.
C. a backward or upstream integration.
D. a dual-pricing strategy.
Answer: C
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Fast Stop, a gasoline and grocery quick mart, charges $2 for a 20 ounce fountain drink and $3 for a 40 ounce fountain drink. This is an example of ________.
A) second-degree price discrimination B) an all-or-nothing offer C) two-part pricing D) third-degree price discrimination
Barter can best be defined as:
a. the direct exchange of one good for money. b. the direct exchange of money for a good. c. the direct exchange of goods and services without the use of money. d. the direct exchange of labor services for wages. e. the payment of interest on a savings account.
If Mexico's GDP drops, which of the following will happen in the market for pesos?
a. A rightward shift of the supply curve, a depreciation of the peso, and a larger number of pesos traded b. A rightward shift of the demand curve, a depreciation of the peso, and a smaller number of pesos traded c. A rightward shift of the demand curve, an appreciation of the peso, and a larger number of pesos traded d. A leftward shift of the demand curve, a depreciation of the peso, and a smaller number of pesos traded e. A leftward shift of the supply curve, an appreciation of the peso, and a smaller number of pesos traded.
Which of the following best describes the relationship between economic freedom and the growth rate of real per capita Gross Domestic Product (GDP)?
What will be an ideal response?