When a monopolist practices perfect price discrimination,
a. consumers receive no consumer surplus
b. there is allocative inefficiency
c. there is a deadweight loss
d. profit is lower than for the nondiscriminating monopolist
e. total revenue is less than for the nondiscriminating monopolist
A
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Why does the wage gap between average wages for men and women exist?
a. There is systemic discrimination in labor markets. b. Men and women do not have the same skill sets. c. Men and women make different choices. d. There is no government policy regarding equal pay for equal work.
State four factors that explain why investment spending tends to be unstable.
What will be an ideal response?
Suppose there is an increase in tax payments, T, of $300 billion in this economy. Given your consumption function and no other changes, what is the change in consumption given this change in tax payments?
Consider an individual consumption function, which is the standard textbook consumption function, that is, has a y-intercept of autonomous consumption and is linear in the disposable income. Assume that the slope of this consumption function equals 0.7, and that the autonomous consumption equals $20 billion in the aggregate economy.
The first step toward reducing negative externalities or maintaining them within acceptable bounds, according to the argument of the textbook, is
A) constructing an exhaustive list of all negative externalities. B) creating a central planning authority for negative externalities. C) cultivating such civic virtues as courtesy and tolerance. D) halting population growth. E) prohibiting activities whose costs are greater than their benefits.