How is price discrimination treated under antitrust laws?
What will be an ideal response?
Price discrimination involves charging different prices to different groups based on certain characteristics such as age. This practice is not illegal because it often promotes competition and contributes to consumer welfare. It is illegal in those cases when it is used as a means of blocking the entry of a new business or to drive out competitors.
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Which of the statements best describes the difference between economic regulation and social regulation?
A) There are no significant differences between economic and social regulation, social regulation is a more modern way of regulating an economy. B) Economic regulation focuses on output and price; social regulation focuses on improving the quality of life. C) Social regulation focuses on output and price; economic regulation focuses on quality of life issues. D) Social regulation targets industries like transportation, while economic regulation targets utilities.
When externalities are present in the market, what results?
a) The established equilibrium maximizes the total benefit to society as a whole. b) Market participants lose some market benefits to bystanders. c) Both equity and efficiency are maximized. d) The market fails to allocate resources efficiently.
Explain why most retired individuals are not likely to be heavily invested in municipal bonds.
What will be an ideal response?
A country will grow faster if
What will be an ideal response?