If a monopolist engages in price discrimination, it will:
A. realize a smaller profit.
B. charge a higher price where individual demand is inelastic and a lower price where
individual demand is elastic.
C. produce a smaller output than when it did not discriminate.
D. charge a competitive price to all its customers.
Answer: B
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________ refers to any factor that keeps the market wage above the level that would clear the labor market
A) Wage discrimination B) Price ceiling C) Wage rigidity D) Wage stability
The underground economy
a. includes mining production. b. is estimated by the government and the estimate is part of official GDP. c. includes production that uses illegal workers who are paid less than minimum wage. d. is measured by government officials through tax returns. e. is difficult to describe but easy to measure.
If an economy saves 20 percent of any increase in real Gross Domestic Product (GDP), then an increase in investment of $1 billion can produce an increase in real Gross Domestic Product (GDP) of as much as
A. $5 billion. B. $2 billion. C. $8 billion. D. $10 billion.
What do economists mean when they say there is "market failure"?
A. Markets have surpluses or shortages so that government rationing is necessary. B. Free markets have led to excessive profits. C. Business has introduced a product that consumers do not want. D. Free markets yield results that economists do not consider socially optimal.