Which of the following is NOT a precondition for price discrimination?
A. The seller must have some market power.
B. The price elasticities of demand are different for each group of consumers.
C. The product is a durable good.
D. The product cannot be resold to another customer.
Answer: C
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It is estimated that in 2007, Mexico had a population of 110 million and Brazil had a population of 190 million. At the same time, Mexico's GDP was $1 trillion while Brazil's was $1.31 trillion. These data show that
A) Brazil had a healthier economy than did Mexico. B) Mexico's GDP per person was lower than was Brazil's GDP per person in 2007. C) Mexico's GDP per person was $9090 in 2007. D) Brazil's GDP per person was $5300 in 2007.
If the money supply grows at 6% and the inflation rate is 2%, the quantity theory predicts that the change in real GDP will be
A) 0.33%. B) 3%. C) 4%. D) 8%.
You are sick and tired of your old wardrobe. You decide to donate it to a charity of your choice. Your action
a. Creates wealth by moving the clothes from lower value use to higher value use b. Destroys wealth since you lose your clothes c. Creates wealth by making you feel richer d. All of the above
In the figure above, the efficient amount of output is
A) 20 units per day. B) 40 units per day. C) 60 units per day. D) 80 units per day.