Which of the following correctly describes price discrimination?
a. Selling different products to different people for the same price.
b. Selling different products to identical people for different prices.
c. Selling the same product to different people for different prices.
d. Selling the same product to the same person for the same price.
c
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The real business cycle theory focuses on the impact that changes in long-run aggregate supply will have on the business cycle
Indicate whether the statement is true or false
If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25 you would
A. value the gift of $25 more than the loss of $25. B. value the loss of $25 more heavily than the gift of $25. C. see the two events as exactly offsetting and thereby of no consequence in your overall welfare. D. discount the loss and value the gain so that you feel you have gained welfare.
Under what circumstances would government loan guarantees be socially beneficial?
A. When the guarantees socialize losses and privatize gains. B. When the guarantees stimulate production of goods generating significant spillover costs. C. When the guarantees promote production of goods otherwise underproduced by the private sector. D. When the guarantees increase company profits.
Consider an unregulated monopoly in Figure 13.2. If we look at the firm's long-run average cost, the firm is exhibiting:
A. diseconomies of scale. B. diminishing returns. C. economies of scale. D. increasing returns.