Under perfect price discrimination,
a. equilibrium quantity and consumer surplus are the same as under perfect competition
b. equilibrium quantity is greater and consumer surplus is the same as under perfect competition
c. equilibrium quantity and consumer surplus are less than under perfect competition
d. equilibrium quantity is the same but consumer surplus is less than under perfect competition
e. equilibrium quantity is less but consumer surplus is the same as under perfect competition
D
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The money supply of Granov is $10,000 in a 100-percent-reserve banking system. If the Central Bank of Granov decreases the reserve requirement ratio to 10 percent, the money supply could increase by no more than $9,000
a. True b. False Indicate whether the statement is true or false
Refer to the data below. Which of the following statements about the two nations is correct based on the principle of comparative advantage?
Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the production possibilities for rice and corn given in the following table:
A. Xat should specialize in the production of corn
B. Wat should specialize in the production of rice
C. Xat has a comparative advantage in the production of rice
D. Xat has a comparative advantage in the production of corn
A friend is currently earning income but does not expect to earn income in the future. When the interest rate rose, I observed him saving less. From this, I can conclude that current consumption is an inferior good for my friend.
Answer the following statement true (T) or false (F)
Which of the following is likely to cause flour mills to increase their demand for labor?
A) A decrease in the wage rate B) An increase in the wage rate C) An increase in the price of bread D) A decrease in the price of flour products