Price discrimination works best when
A. Buyers have information about prices charged to different customers.
B. Sellers cannot meet collectively.
C. A product is purchased frequently by consumers.
D. Buyers do not have perfect information about the price.
Answer: D
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Sarah is considering lending an amount of $45,000 to her friend who promises to return $60,000 after the end of ten years
What is the net present value of Sarah's investment? Is it worthwhile to undertake this investment? Assume that the market rate of interest is 6%.
The growth of the Eurodollar market is due to the ________ spreads offered by ________
A) narrower, Eurobanks B) narrower, governments C) narrower, domestic banks D) Both A and B
If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in terms of ________ percent
A) dollar; euros is 3 B) euro; dollars is 1 C) dollar; euros is 9 D) euro; dollars is 11
The quantity of labor an individual supplies to any market
a. always increases as the market wage rate rises b. is contingent upon the wage rates offered in other labor markets c. always decreases as the market wage rate rises d. could never be zero over the realistic range of wage rates e. depends only on the opportunity cost of the individual's time in other labor markets