When David Palmisano won the Powerball, he could choose between getting annual installments or taking a lump sum. An economist suggested that David think about
a. marginal product
b. the present value of an income stream
c. marginal disutility
d. the present value of a payment only one year hence
e. the demand for labor
B
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When the domestic price level increases, exports decrease and imports increase. Other things the same, this change is illustrated by a
A) movement upward along the aggregate demand curve. B) movement downward along the aggregate demand curve. C) rightward shift of the aggregate demand curve. D) leftward shift of the aggregate demand curve. E) rightward shift of the aggregate supply curve.
Refer to the Article Summary. The pricing method described in the article is referred to as first-degree price discrimination. First-degree price discrimination is also known as
A) perfect price discrimination. B) odd pricing. C) two-part tariff pricing. D) arbitrage.
Suppose that your personal valuation for a painting is $200 . Which auction format would induce you to bid more?
a. First price. b. Second price. c. You would bid the same in any format. d. Depends on the environment.
The theory of economic rent can be used to explain high incomes received by movie stars and athletes
a. True b. False Indicate whether the statement is true or false