Question :
21) Walt Disney began planning for Disneyland in the early : 1387932
21) Walt Disney began planning for Disneyland in the early 1950s. When he began to consider how the amusement park would be funded
A) he decided to use the profits earned from his company’s cartoons and motion pictures.
B) he had trouble raising the required funds. Eventually, he convinced a television network to fund the amusement park in exchange for providing a weekly television program.
C) he decided to borrow money from Hollywood banks. The banks quickly agreed to loan Disney the money because of Disney’s reputation and previous success.
D) he had trouble raising the required funds from banks, so he decided to issue “Disney bonds.” He had no trouble paying the interest and principal on the bonds with profits from Disneyland.
22) When Disneyland opened in 1955, what prices were charged for admission and rides?
A) Admission was free; customers paid for rides.
B) All customers paid the same price for admission; rides were free.
C) Admission prices varied by your age, home address and occupation; rides were free.
D) All customers paid the same low price for admission; customers were also charged prices for rides.
23) Today, Walt Disney World charges different customers different prices for admission. This pricing strategy is called
A) arbitrage.
B) odd pricing.
C) cost-price pricing.
D) price discrimination.
24) Many firms use technology to gather information on the preferences of consumers and their responses to changes in prices. This information is then used to adjust prices of the firms’ goods and services. This practice is called
A) price discovery.
B) empirical research.
C) yield management.
D) econometrics.
25) Which of the following will prevent firms from engaging in price discrimination?
A) yield management
B) arbitrage
C) transactions costs
D) odd pricing
26) What is meant by the “law of one price”?
A) Identical products should sell for the same price everywhere.
B) A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices.
C) This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company) to charge the same price for the same good or service in different states.
D) Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries.
27) The costs in time and other resources that parties incur in the process of agreeing to and carrying out an exchange of goods or services are called
A) exchange costs.
B) implicit costs.
C) transactions costs.
D) selling costs.
28) Harry attended a baseball card show in New York City where he bought a number of rookie cards of Pittsburgh Pirates baseball players from the 1950s and 1960s. Harry then sold the cards in Pittsburgh, Harry’s hometown, where he knew the cards sold for higher prices. The profits Harry earned from these transactions are called
A) arbitrage profits.
B) normal profits.
C) accounting profits.
D) implicit profits.
29) The law of one price
A) states that consumers can only buy one good or service at a time.
B) is a law passed by Congress that prohibits firms from selling a product at two different prices in the same market at the same time.
C) states that consumers will pay any price for a product that has a perfectly inelastic demand curve.
D) states that identical products should sell for the same price everywhere.
30) According to the law of one price, identical products should sell for the same price everywhere if
A) consumers have knowledge of the prices charged for products in different markets.
B) transactions costs are zero.
C) firms can prevent consumers from engaging in arbitrage.
D) there are no tariffs or other restrictions on imports or exports.
