Which is NOT a necessary condition for price discrimination to exist?
A) The firm must face a downward sloping demand curve.
B) The firm must identify buyers with different elasticities of demand.
C) The firm must be able to prevent resale of the product or service.
D) The firm must establish different prices to reflect marginal cost.
Answer: D
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How are the fundamental economic decisions determined in North Korea?
A) The United Nations decides because North Korea is a developing economy. B) These decisions are made by the country's elders who have had much experience in answering these questions. C) Individuals, firms, and the government interact in a market to make these economic decisions. D) The government decides because North Korea is a centrally planned economy.
Which of the following is the largest component of federal spending today?
A) income security B) Social Security C) Medicare D) national defense
If people work less as the wage rate increases, their labor supply curves are backward bending
Indicate whether the statement is true or false
Which one of the following would count as investment in the national income accounts?
a. purchase of a new airplane by an airline b. purchase of a U.S. government bond c. purchase of 100 shares of Wal-Mart stock d. purchase of an existing house