Which of the following is NOT an example of price discrimination?
A. Pharmaceutical companies charge customers living in wealthier countries higher prices than for identical drugs in poorer nations.
B. A hard cover book selling for more than the same book in electronic form
C. Breakfast cereal makers sending coupons to select buyers
D. Student discount at a local movie theater
Answer: B
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Why is adverse selection more likely in financial markets when interest rates rise?
A) The remaining borrowers are more likely to be risky. B) Higher interest rates are likely to hurt the economy. C) If firms have to pay higher interest rates, they may choose to use the funds differently than they first intended. D) Banks eliminate risky borrowers by raising interest rates.
Company towns have situated largely in the
A. East. B. South. C. Midwest. D. West.
A workplace externality benefits fellow workers.
Answer the following statement true (T) or false (F)
The primary motivation for private foreign investment in developing nations is
A. the potential for high rates of return. B. to do research in countries with fewer social regulations. C. to improve the standard of living for workers. D. to eradicate poverty.