Relative to a monopolist charging a single price to all consumers, price discrimination ________ total economic surplus.
A. increases
B. sometimes increases and sometimes decreases
C. decreases
D. has no effect on
Answer: A
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Nominal GDP is calculated by using
A. prices set in a base year. B. average prices in all major cities. C. current prices. D. prices charged by initial producers.
If the government seizes Lucy's property and resells it to Ethel,
A) Lucy and Ethel collectively capture the resulting gains. B) Lucy captures the resulting gains. C) Ethel captures the resulting gains. D) Neither Lucy nor Ethel capture any resulting gains.
If new firms are expected to enter an existing market, ________
A) the market price is likely to fall B) the market demand is likely to increase C) the market supply is likely to fall D) the profits of all firms are likely to increase
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would have the ability to share risk with shareholders. B) As a sole proprietor, Torrie would face limited liability. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.