Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy. The Costco membership fee
A) is used by Costco to cover its fixed costs of production.
B) buys the consumer the right to make future purchases at Costco.
C) is a resalable asset to the consumer.
D) is a resalable asset to the producer.
Ques. 2If there is public dissaving, investment spending in the economy will decline, holding everything else constant.
Indicate whether the statement is true or false
Ques. 3Refer to Figure 28-2. At which point is the unemployment rate equal to the natural rate of unemployment?
A) A
B) B
C) C
D) There is insufficient information on the graph to answer this question.
Ques. 4A bank will consider a car loan to a customer ________ and a customer's checking account to be ________.
A) a liability; a liability
B) an asset; net worth
C) a liability; an asset
D) an asset; a liability
E) an asset; an asset
Ques. 5Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave.
B) It is difficult to measure the output and attribute output to a particular worker.
C) It gives workers incentive to produce more.
D) It increases firm profits.
Ques. 6As the value of the Gini coefficient approaches zero
A) the percentage of the population under the poverty line decreases.
B) the percentage of the population under the poverty line increases.
C) income distribution becomes more unequal.
D) income distribution becomes less unequal.
Ques. 7Investment spending will decrease when
A) firms become more optimistic about earning future profits.
B) the corporate income tax decreases.
C) business cash flow decreases.
D) the interest rate falls.
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