What is meant by the term "exclusive dealing"? Give an example of an exclusive deal. When is it illegal?
What will be an ideal response?
Exclusive dealing is a contract that prevents a firm from selling competing items. For instance, Taco Bell has a contract with Pepsi that only Pepsi products will be sold at Taco Bell. Hence Pepsi has arranged an exclusive deal with Taco Bell. Exclusive deals are illegal under the Clayton Act only if they substantially lessen competition or create a monopoly.
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Total reserves of private banks are
A) federal reserve notes. B) all customer deposits. C) deposits held at the Fed and vault cash. D) the minimum amount banks need to hold against time deposits.
In the expenditure approach to GDP, which of the following would be excluded from measurements of GDP?
A) Government payments for goods produced by foreign firms B) Government payments for goods produced by firms owned by state or local governments C) Government payments for welfare D) All government payments are included in GDP.