When an electronics company advertises on the local newspaper a 10% discount coupon, is this an example of price discrimination? Why or why not?
What will be an ideal response?
Yes, it is price discrimination. The price sensitive individual would search for these coupons prior to making a purchase, and will end up paying the lower price. A price insensitive individual will not search for these coupons and will not get the lower price.
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Refer to Figure 8.1. Holding other variables constant, an increase in the real wage rate will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
The short run is a time period such that:
a. the existing firms in the market do not have sufficient time to change the amounts of any of the inputs that they employ. b. the existing firms in the market do not have sufficient time to either increase or decrease their current rate of output. c. the existing firms in the market do not have sufficient time to increase the size of their existing plant or build a new factory. d. new firms may build plants and enter the industry.
In a negative income tax system, some people pay taxes and others receive money from the IRS
Indicate whether the statement is true or false
Nowadays, most observers believe that monetary policy
a. is less important than fiscal policy. b. is more important than fiscal policy. c. and fiscal policy are equally important. d. and fiscal policy are both unimportant.