If external benefits are taken into account in the market
A) the demand curve would shift to the left.
B) the supply curve would shift to the left.
C) the demand curve would shift to the right.
D) the supply curve would become vertical.
C
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In order to be able to price discriminate and maximize profit, a monopolist must be able to do all of the following EXCEPT
A) identify and separate different buyer types. B) sell a product that cannot be resold. C) identify competitors. D) determine the output where marginal revenue equals marginal cost.
When a person's income increases:
A. the individual's budget constraint shifts straight out, maintaining the same slope. B. the individual's budget constraint shifts straight in, maintaining the same slope. C. the individual's budget constraint rotates out and becomes flatter. D. the individual's budget constraint rotates in and becomes steeper.
Which of the following statements about unanticipated inflation is true?
a. It reduces average purchasing power in the economy. b. It reduces total purchasing power in the economy. c. It redistributes purchasing power in the economy. d. It reduces nominal wages. e. Its effects are spread evenly throughout the economy so that no one gains or loses from inflation.
What insight into human behavior do economist learn from observing people playing the ultimatum game?