College students and faculty members have a more elastic demand than the general public for Apple's iMac desktop computers. From this we can conclude that
A) Apple will earn economic profits from the computers it sells to the general public but will break even on the computers it sells to college students and faculty members.
B) Apple will charge college students and faculty members lower prices than it charges the general public.
C) the general public will earn arbitrage profits by buying iMac desktop computers from Apple and reselling them to college students and faculty members.
D) Apple will charge college students and faculty members higher prices than it charges the general public.
B
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If the marginal social benefit of pizza exceeds the marginal social cost of pizza, the economy is producing the efficient quantity of pizza
Indicate whether the statement is true or false
Which of the following categories of business cycle theories includes the under investment theory?
a. physical. b. monetary. c. psychological. d. spending and saving.
Gross Domestic Product includes the sale of intermediate goods and services
a. True b. False Indicate whether the statement is true or false
Economist Jones favors a constant-money-growth-rate rule. She says that if the annual money supply growth rate each year is equal to the average annual growth rate in Real GDP, price stability will exist over time. What would economist Smith, who favors activist monetary policy, say to economist Jones?
A) Your analysis assumes that Real GDP is constant over time, and it is not. B) Your analysis assumes that velocity is constant, and it is not. C) Your analysis assumes that you can correctly define the money supply. D) b and c E) a, b and c