Suppose all people have the same age-earnings profile and the percent of the population in each age category is the same. The distribution of income at any point in time will be
A) equal because all have the same profile.
B) equal because incomes and wealth levels must then be the same.
C) unequal because other sources of income will differ.
D) unequal because incomes differ by age.
D
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All of the following are examples of price discrimination EXCEPT
A) buy-one-get-one-free offers. B) "early bird specials" at a restaurant. C) lower ticket prices for matinee performances. D) "buy now, pay later" payment options.
What is the rate of return on a bond with a coupon of $55 that was purchased for $900 and sold one year later for $950?
A) 5.56% B) 6.11% C) 11.67% D) 12.43%
Which of the following statements is true?
a. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. b. In capitalism income is distributed on the basis of need. c. Adam Smith was the father of socialism. d. Most real-world economies are mixed economic systems. e. The "invisible hand" refers to government economic control.
A monopolist's supply of a good is
A. dependent on the monopolist's demand curve and its marginal cost curve. B. given by the portion of the monopolist's marginal cost curve that lies above the average variable cost curve. C. given by the portion of the monopolist's average variable cost curve that lies above the marginal cost curve. D. independent of the monopolist's demand curve.