Microsoft sells a special version of its Windows operating system at a low price in countries where cheap pirated software is widespread. Since the cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product, why is Microsoft charging this lower price?
A. It is trying to take advantage of the different demand elasticities in the different countries.
B. The price differences are due to differences in cost among countries.
C. The differential pricing reflects the differences in the barriers to entry.
D. The price differential is explained by the lower cost to develop the new software.
Answer: A
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If interest rates are to remain constant, the money supply should change: a. in the opposite direction to a change in aggregate demand. b. in the same direction as a change in money demand
c. only when investment changes. d. only when the demand for money decreases. e. only when the inflation rate changes.
State-chartered banks that are members of the _____________ System are examined by the Federal Reserve.
Fill in the blank(s) with the appropriate word(s).
Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:
A. frictionally unemployed. B. structurally unemployed. C. cyclically unemployed. D. not part of the labor force.
Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at
A. GDP. B. Percentage change in GDP. C. Per capita GDP. D. Population.