Predatory pricing
A) is extremely hard to document in the U.S. economy today.
B) is most often practiced in the retailing industry.
C) is not legal under U.S. law but is regularly practiced by foreign firms competing in the United States.
D) is principally responsible for the decline of competition in the oil industry.
A
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Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Pick the true statement:
A) The opportunity cost of 1 unit of beef in Canada is 4 units of oranges. B) The opportunity cost of 1 unit of oranges in the U.S. is 4 units of beef. C) Canada is has a comparative advantage in oranges. D) The U.S. has a comparative advantage in beef. E) None of the above is true.
Consider an economy that has the following monetary data. The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation are 20% per year
Suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. What is the nominal value of seignorage over the year? A) $10 B) $60 C) $70 D) $200
Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. What is likely to happen to equilibrium price and quantity of lawn mowers as a result in the changing price of oil? Supply and demand will both:
A. increase, increasing equilibrium quantity and having an indeterminate effect on price. B. decrease, decreasing equilibrium quantity and having an indeterminate effect on price. C. increase, increasing equilibrium price and having an indeterminate effect on quantity. D. decrease, increasing equilibrium price and having an indeterminate effect on quantity.
A fundamental reason that governments provide public goods is that
A. negative externalities are part of the production process of those goods. B. those goods are perfectly divisible. C. those goods are subject to the free-rider problem. D. public goods are merit goods.