The GDP deflator in year 2 is 110 using year 1 as a base year. This means that, on average, the price of goods and services is
A. 110% higher in year 1 than in year 2.
B. 110% higher in year 2 than in year 1.
C. 5% higher in year 1 than in year 2.
D. 10% higher in year 2 than in year 1.
Answer: D
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Economic discrimination against minorities exists when
A) minorities have less education and training than whites. B) minorities are paid less than whites on average. C) minorities are paid less than whites with the same education, experience, and training. D) minorities are in different occupations than whites.
Price discrimination refers to a system of pricing
a. based on buyer income rather than buyer demand conditions, so the poor pay more than the rich. b. that is always more profitable than simple "single-price" pricing. c. that forces customers who require more service to pay higher prices. d. where consumer groups with a more elastic demand for the product are charged lower prices.
On a linear demand curve, demand is ________ at small quantities than it is at the middle of the demand curve.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.
Analyze the following statement: "I know the fact that prices have started to rise rapidly seems like bad news, but at least prices starting to go up means that output must be starting to go up as well."
What will be an ideal response?