A monopoly is the only seller of a product
A. without a wellminusdefined demand curve.
B. with many substitutes.
C. with a perfectly inelastic demand.
D. without a close substitute.
Answer: D. without a close substitute.
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If the price level increases by 2 percent each year, the inflation rate is increasing
a. True b. False Indicate whether the statement is true or false
All of the following are examples of normative statements EXCEPT:
A. Low unemployment is more desirable than low inflation. B. High rates of economic growth are preferable to low rates. C. Output per person should increase at an average annual rate of 5 percent. D. Output per person typically grows more slowly than output per worker.
Consider a labor market in which employers discriminate against African Americans. Comparing the labor market equilibrium with no discrimination to the equilibrium with discrimination,
A. The African American wage rate is higher without discrimination than with discrimination. B. The number of African American workers hired is lower without discrimination than with discrimination. C. The white wage rate is higher without discrimination than with discrimination. D. The African American wage rate and the white wage rate are equal with and without discrimination; only the number of workers differs.
Why do price discriminating firms often offer lower prices to children and the elderly?
A. They have a lower willingness to pay than other consumers. B. Their demand for goods and services tends to be less elastic than other consumers. C. These firms are more interested in equity than profit maximizing. D. Such a strategy lowers the costs of the firm.