An amusement park charges an entrance fee of $75 per person plus $2.50 per ride. This is an example of
A) first-degree price discrimination.
B) a two-part tariff.
C) second-degree price discrimination.
D) bundling.
E) tying.
B
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Explain what the Saudi oil minister meant when he warned OPEC of using its market power too much by saying "Remember, the Stone Age did not end because we ran out of stones."
What will be an ideal response?
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion. b. $130 billion. c. $1,873 billion. d. $1,227 billion. e. $967 billion.
The Laffer curve suggests that if tax rates get too _____, the government's tax revenues will _____.
A. high; fall B. high; rise C. low; fall D. low; rise
Which of the following causes the opportunity cost of holding money in the form of cash to decrease?
A. Higher short-term yields. B. Lower interest rates. C. Higher long-term yields. D. Higher reserve requirement.