The idea of charging two different groups of consumers two different prices is practiced in:
A. two-part pricing.
B. price discrimination.
C. price matching.
D. None of the statements is correct.
Answer: B
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Between 1999 and 2007, after NAFTA had been in operation for some time,
A. U.S. exports to Mexico increased, but U.S. imports from Mexico increased even more. B. total U.S. imports increased, but total U.S. exports increased even more. C. U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more. D. total U.S. exports fell, but total U.S. imports fell even more.
Moral hazard is more likely to arise when:
A. one side of an economic relationship cannot observe the behavior of those on the other side. B. adverse selection is present. C. insurance policies have high deductibles. D. people are uninsured.
Your neighbor in an apartment complex plays his music very loudly late at night, which makes it difficult for you to get to sleep. You offer the neighbor $50, the monetary value you put on your sleep, to never play his music between midnight and 7 AM. By
doing so A) you have failed to bring about an efficient solution since you should have complained to the police. B) you have indicated the cost of the externality. The externality is not internalized even if he accepts your offer. C) you have indicated the cost of the externality, which internalizes the externality. D) you have indicated a willingness to make the external cost a social cost.
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. Answer the following question on the basis of this information. Refer to the information. The level of productivity is:
A. 20. B. 10. C. 5. D. 2.