Sellers can gain profits from price discrimination because
A. Charging different prices based on willingness to pay can increase revenues without increasing costs.
B. Total revenues are maximized when all buyers pay the same price.
C. Total expenses are less with price discrimination.
D. Different prices charged to different customers can lower total revenue.
Answer: A
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Full employment is not zero unemployment because
A) there are statistical errors when determining the unemployment rate that cannot be overcome. B) there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force. C) there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics. D) government workers are not counted in the labor force.
If a bank keeps some of its excess reserves, the actual money multiplier
a. increases b. stays the same c. goes to zero d. decreases e. increases, then decreases
The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change
a. in the price level and output. b. in the price level, but not output. c. in output, but not the price level. d. in neither the price level nor output.
In the traditional Keynesian model, an increase in taxes leads to all of the following EXCEPT
A. an increase price level. B. a decrease in consumption. C. a decrease in aggregate demand. D. lower real GDP.