Is price discrimination always legal in the United States?
A. No, while price discrimination is legal throughout the country, it is not allowed if it is used to drive rivals out of business.
B. Yes, a firm can price discriminate as long as it benefits them.
C. No, price discrimination is discrimination, and its practice is never allowed in the United States.
D. No, price discrimination is not legal in some states like California and Nebraska.
Answer: A
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Suppose that Year 2 is the base year. Year 1 real GDP is
A) $200. B) $270. C) $310. D) $390.
While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on
a. government contracts to promote research and publications. b. demand-and-supply analysis. c. the economic theory of John Maynard Keynes. d. consumer protection laws and antitrust legislation.
The short-run aggregate supply curve (SRAS) slopes upward to the right because unexpected increases in prices will
a. increase aggregate demand as consumers buy more. b. decrease aggregate demand as consumers buy less. c. cause firms to expand output since the higher product prices will improve profitability. d. cause firms to reduce output since the higher product prices will decrease profit margins.