The purchase of stocks and bonds issued in another country is known as foreign direct investment

Some luxury product manufacturers will purposefully raise prices on their goods in order to reduce sales volume. This strategy may successfully increase sales revenue if the luxury goods are subject to the ________ effect and have relatively ________ demand.

A. bandwagon; elastic B. snob; inelastic C. bandwagon; inelastic D. snob; elastic

In the market for DVDs, 500,000 DVDs a month are available. The value people place on the 500,000th DVD a month is less than the marginal social cost of producing it. Resource use ________

A) is efficient B) is inefficient C) would be more efficient if people firms would produce more DVDs D) would be more efficient if people would buy more DVDs