A purely self-interested diner is more likely to tip:
A. only when dining in a very up-scale restaurant.
B. only when dining in a restaurant at which he often eats.
C. always, to assure good service.
D. whenever he can afford to.
Answer: B
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Price differentiation is a situation in which
A) there are different prices for similar products reflecting differences in the marginal cost of providing the commodities to different groups of buyers. B) there are different prices for the same product that are not due to differences in the marginal cost of providing the commodity to different groups of buyers. C) consumers' comparison-shop. D) the demand curve is vertical.
If a price ceiling of $8 were placed on the market in the graph shown, which area represents the surplus that is transferred from producers to consumers?
A. C + D + F + G
B. C + D
C. F + G
D. C
One advantage of a money market mutual fund account is that: a. it is guaranteed for a larger amount than are FDIC-insured deposits
b. it is a riskless asset. c. its holders typically earn more interest than they can with a regular bank account. d. it earns high interest and is liquid. e. it is completely liquid and riskless.
Suppose that efficiency wages become more common in the economy. Imposing efficiency wages
a. increases the quantity demanded and decreases the quantity supplied of labor. b. decreases the quantity demanded and increases the quantity supplied of labor. c. increases the quantity demanded and decreases the quantity supplied of labor. d. decreases the quantity demanded and increases the quantity supplied of labor.