Price discrimination refers to a system of pricing
a. based on buyer income rather than buyer demand conditions, so the poor pay more than the rich.
b. that is always more profitable than simple "single-price" pricing.
c. that forces customers who require more service to pay higher prices.
d. where consumer groups with a more elastic demand for the product are charged lower prices.
D
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In the above figure, real GDP at full employment is
A) $16 trillion. B) $16.5 trillion. C) more than $16 and less than $16.5 trillion. D) None of the above answers is correct.
Which of the following is motivated by an equity concern?
A) The United States protects intellectual property rights, allowing inventors to prevent others from using their inventions without payment. B) Some U.S. colleges have cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need. C) Following the removal of subsidies in urban water use, household demand for water decreased quite significantly in Bogor, Indonesia. D) In November 2003, the Federal Communications Commission implemented the "local number portability" rule which gives cell phone customers the option of keeping their number when they switch carriers within the same geographic region.
Prior to 1863, all commercial banks in the United States
A) were chartered by the U.S. Treasury Department. B) were chartered by the banking commission of the state in which they operated. C) were regulated by the Federal Reserve. D) were regulated by the central bank.
If an industrial union is able to negotiate a wage above the market-clearing wage, employment in the industry will
a. increase b. decrease c. increase, if the union can restrict the supply of labor d. increase, if the union can increase the supply of labor e. decrease due to the strike-breaking activity of the firm