Economists do not think price discrimination is unfair because
A. people with higher incomes should pay higher prices than those with lower incomes.
B. if the prices charged to some buyers get too high, those who are able to buy at lower prices will just resell their purchases to the people facing the high prices.
C. economists are concerned with efficiency rather than fairness.
D. more buyers are able to purchase the good with price discrimination, some buyers pay a lower price than if there were a single price, and sellers earn higher profit than if there were a single price.
Answer: D
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If the Fed fears inflation, then the Fed
A) directs banks to raise the nominal interest rate. B) will increase the income tax rate on interest income. C) directs banks to lower the nominal interest rate. D) will sell government securities in the open market. E) will buy government securities in the open market.
During which Presidential administration did the United States both end its commitment to Bretton Woods and institute significant wage and price controls?
a. Dwight Eisenhower b. Richard Nixon c. Jimmy Carter d. William Clinton
If the price of a good is 0, a consumer will
a. consume all units that have positive total utility b. consume an infinite quantity c. consume all units with positive marginal utility d. consume the entire amount supplied e. consume until total utility becomes 0
Which of the following is true for the law of demand?
a. Sellers increase the quantity of a good available as the price of the good increases. b. An increase in price results from false needs. c. There is an inverse relationship between the price of a good and the quantity of the good demanded. d. Prices increase as more units of a product are demanded.