When grocery stores issue special discount cards for shoppers effectively offering different prices based on quantities purchased, this is an example of
A. quantity differentiation.
B. product differentiation.
C. price discrimination.
D. price differentiation.
Answer: C
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Open market sales shrink ________ thereby lowering ________
A) the money multiplier; the money supply B) the money multiplier; reserves and the monetary base C) reserves and the monetary base; the money supply D) the money base; the money multiplier
Stockholders of ComfortAir Corporation, an air conditioner and furnace manufacturer, are concerned that the companies executives may take on greater risks than stockholders desire. This example illustrates
a. moral hazard and market risk. b. moral hazard and firm specific risk. c. adverse selection and market risk. d. adverse selection and firm specific risk.
In monopoly:
a. consumers are confronted with a price that is lower than average total cost. b. consumers will buy more of the good than is economically efficient. c. consumers are confronted with a price that is lower than marginal cost. d. a basic condition for efficiency is violated be
The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.Real Domestic Output Demanded (in Billions)Price Level (Index Value)Real Domestic Output Supplied (in Billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000Refer to the above table. If the quantity of real domestic output demanded increased by $2000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 350 and $8000. B. 300 and $8000. C. 200 and $6000. D. 250 and $7000.