During an economic downturn, Keynes argued that firms would have ________ to increase spending because ________.
A. no incentive; interest rates would be too high.
B. no incentive; they already had enough capacity to meet demand.
C. a strong incentive; interest rates would be too high.
D. a strong incentive; they wouldn't have enough capacity to meet demand.
Answer: B
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Suppose a Chinese restaurant routinely provides free fortune cookies to its customers. The economic way of thinking suggests the restaurant is
A) engaging in predatory pricing of its meals. B) attempting to increase its total profit. C) selling Chinese food below cost. D) doing all of the above. E) almost certainly doing none of the above.
Once the copyright on a book expires
A) no publisher can claim copyright of that author's words, but the book can be reissued by any publisher. B) only the first publisher to reissue the book can claim copyright of that author's words. C) any publisher can now claim copyright of that author's words. D) no publisher can claim copyright of that author's words because the book can never be reissued.