Statistical discrimination in the automobile insurance industry means that young male drivers who drive ________ will pay ________ rates relative to the claims they generate.
A. recklessly; higher
B. slowly; lower
C. carefully; lower
D. carefully; higher
Answer: D
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Which of the following leads to a deadweight loss? i. competition ii. taxes iii. consumer surplus iv. monopoly
A) ii only B) iii and iv C) i and ii D) ii and iv E) i, ii, and iii
Competitive markets with no external costs or benefits and no government price ceilings, floors, taxes or subsidies ________ efficient. According to the "It's not fair if the rules aren't fair" idea of fairness, competitive markets ________ fair
A) are; are B) are; are not C) are not; are D) are not; are not
In 2017, an income of $125,000 would, roughly, make a family
A. richer than 40 percent of U.S. households but poorer than 35 percent. B. richer than 50 percent of U.S. households but poorer than 25 percent. C. richer than 85 percent of U.S. households but poorer than 8 percent. D. richer than 95 percent of U.S. households but poorer than 1 percent.
The Sherman Act declares that price discrimination, tying contracts, stock acquisitions between corporations, and interlocking directorates are illegal when their effect is to reduce competition.
Answer the following statement true (T) or false (F)