Which of the following reasons explains how second-degree price discrimination works?
A. In order to get people to buy more of a good you typically have to lower the price because of the law of demand.
B. The price of the good or service is what the consumers are willing and able to pay, which increases profits.
C. People will buy more of a good when they have relatively inelastic demands for the good.
D. Producers have increasing average total costs as they produce more of a good.
Answer: A
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The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.
A) 1 ton B) as many tons as possible C) 3 tons D) 5 tons
Which of the following measures of globalization was not affected during the aftermath of the terrorist attacks in the United States on September 11, 2001?
a. World trade b. Global foreign direct investment c. International travel and tourism d. International telephone calls e. Political engagement
The potential rewards that are available to an individual if a particular activity is undertaken are known as
A) greed. B) irrational thought processes. C) incentives. D) intrinsic values.
If the output gap equals 180 billion, then:
A. there is significant cyclical unemployment. B. there is an expansionary gap. C. potential GDP exceeds actual GDP. D. cyclical unemployment equals the sum of structural and frictional unemployment.