Setting a price so low that competitors are driven out of a market and then boosting the price is called
a. price discrimination
b. resale price maintenance.
c. a tying arrangement
d. price fixing.
e. predatory pricing
Answer: e. predatory pricing
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The implicit GDP deflator is
A) nominal GDP divided by real GDP. B) nominal GDP times real GDP. C) real GDP divided by nominal GDP. D) the zero economic growth society.
The real business cycle model focuses on how
A) the labor theory of value is the best measure of value of a good or service. B) productivity shocks explain fluctuations in real GDP. C) wage and price stickiness explains fluctuations in real GDP. D) the Federal Reserve should adopt a monetary growth rule.
Competitive market equilibrium is a market equilibrium with many buyers and sellers
Indicate whether the statement is true or false
As the definition of products narrows (i.e., becomes more specific), the concentration ratio
A) is not valid. B) tends to decrease. C) tends to increase. D) does not change in any predictable manner.