A firm engages in price discrimination when it:
A. charges different prices for different units of different goods.
B. charges the same price for different units of the same good.
C. charges a higher price for units for which the willingness to pay is high than for those units for which the willingness to pay is low.
D. charges a lower price for units for which the willingness to pay is high than for those units for which the willingness to pay is low.
C. charges a higher price for units for which the willingness to pay is high than for those units for which the willingness to pay is low.
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Refer to Table 2-5. Assume Nadia's Neckties only produces ascots and bowties. Nadia faces ________ opportunity costs in the production of ascots and bowties
A) constant B) increasing C) decreasing D) negative
Crowding out refers to the government's increased demand for credit, which:
a. displaces some private sector consumption by decreasing the price level. b. displaces some private sector borrowing by decreasing the interest rate. c. displaces some private sector borrowing by increasing the interest rate. d. hires labor away from the private sector e. displaces some import purchases by the private sector.
An artificially scarce good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
The process by which an economic variable is adjusted to remove the effects of changes predicted to occur at the time of year is known as
a. structural change b. real change c. macroeconomic adjustment d. unemployment adjustment e. seasonal adjustment.