Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment
B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss
C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics
D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
C
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When there are ∞ degrees of freedom, the t∞ distribution
A) can no longer be calculated. B) equals the standard normal distribution. C) has a bell shape similar to that of the normal distribution, but with "fatter" tails. D) equals the distribution.
In a monopolistically competitive market, social welfare would be enhanced if
a. price equaled marginal cost. b. government regulation eliminated the product-variety externality. c. the government raised taxes to subsidize firms that price below average total cost. d. there were fewer firms, making the industry closer to an oligopoly.
If trade policies change, then we would expect aggregate expenditure to:
A. remain constant. B. depends on the policy. C. decrease. D. increase.
Even in a democratic government, elected officials may end up pursuing policies that go against the preferences of the people due to the following reasons, except:
A. Special-interest effect B. The invisible hand of the market C. Limited and bundled choice in elections D. Majority voting system