Compared to a barter economy, using money increases efficiency by reducing:
A. transaction costs.
B. the need to exchange goods.
C. the need to specialize.
D. inflation.
Answer: A
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A doctor charges two different prices for medical services, and the price level depends on the patients' income such that wealthy patients are charged more than poorer ones. This pricing scheme represents a form of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) pricing at each consumer's reservation price.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206
A. consumption possibilities curve. B. production function. C. supply curve. D. production possibilities curve.
If the price of corn falls by 25 percent on world markets, causing American corn consumption to increase by 10 percent, ceteris paribus, the price elasticity of demand for corn in the United States would be
A. 2.50. B. 0.75. C. 0.30. D. 0.40.
Price is a limited decision variable in which of the following market organizations?
A. monopoly B. monopolistic competition C. oligopoly D. perfect competition