A subsidy to wheat farmers will
A. decrease the quantity of wheat supplied.
B. leave both the supply and demand of wheat unchanged.
C. increase the supply of wheat.
D. increase the quantity of wheat demanded.
Answer: C
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Refer to Figure 14-5. If Netflix lowers its price, will this deter Spotify from setting up a streaming video service?
A) no, because Spotify will make a larger profit than Netflix if it chooses to compete B) yes, because Spotify stands to lose $1 million if it competes with Netflix C) no, because Spotify will make a profit if it competes with Netflix D) yes, because Spotify will make a smaller profit than Netflix if it chooses to compete
In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Markets must be segmentable, identifying differences in ability-to-pay. b. Demand for services must be relatively price elastic. c. Profitable service expansion opportunities must be limited. d. Customers cannot know that different prices are being charged. e. The provider must have excess capacity to accommodate the extra business.
Persons who have given up looking for work are classified as
A. unemployed. B. discouraged workers. C. in the labor force. D. temporarily unemployed.
An increase in per capita income is guaranteed by:
A. increasing income slower than the population. B. reducing population slower than income. C. increasing population faster than income. D. increasing income faster than the population.