Why do firms engage in price discrimination?
A) to decrease cost
B) to increase profits
C) to increase consumer surplus
D) to prohibit the resale of their products
B
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The corporation, as a form of business organization, fueled the positive trend toward federal regulation of business activities for all of the following reasons except
(a) Corporations were rapidly becoming more numerous than sole proprietorships and partnerships. (b) Corporations made possible or encouraged growth in the number of giant enterprises. (c) Corporations were adept at market manipulations, including price-fixing. (d) Corporations were able to take advantage of economies of scale which made possible business organizations whose affairs overlapped local or state jurisdictions, creating the need for federal control across state lines.
Economic growth may be represented by a(n):
a. leftward shift of a production possibilities curve. b. outward shift of a production possibilities curve. c. movement along a production possibilities curve. d. production possibilities curve that remains fixed.
Contrast the effects to the euro and the U.S. dollar of a reduction in European tariffs on U.S. imports, ceteris paribus.
What will be an ideal response?
What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
A. print more money B. buy back government bonds on the open market C. sell more government bonds D. encourage the stock market