When a firm with market power practices third-degree price discrimination, it charges the highest price to the group that
a. has the most elastic demand.
b. has the most inelastic demand.
c. purchases the highest quantity.
d. purchases the lowest quantity.
b. has the most inelastic demand.
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Regarding central bank independence
A) the Fed is more independent than the European Central Bank. B) the European Central Bank is more independent than the Fed. C) the trend in industrialized nations has been to reduce central bank independence. D) the Bank of England has the longest tradition of independence of any central bank in the world.
A decrease in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
Transfer payments are an injection into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
Which of the following was an element of the New Deal?
A. Wage and price controls B. Unemployment insurance and bank deposit insurance C. Regulation of the stock market D. Unemployment insurance, bank deposit insurance, and regulation of the stock market, but not wage and price controls