Which of the following is necessary in order for a firm to successfully practice price discrimination?
A) The firm must practice product differentiation.
B) The firm's transactions costs must be zero.
C) The firm must be able to segment the market for the product.
D) The demand for the firm's product is inelastic.
C
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If Congress wanted to counteract the effects of a recession it could
A) increase government purchases. B) increase tax rates. C) increase taxes by a fixed amount. D) decrease defense spending.
An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment
A) decrease; frictional B) increase; frictional C) increase; cyclical D) decrease; cyclical
Changes in the saving rate, labor-force growth rate, and depreciation rate will ________ the steady-state level of real GDP per capita and will ________ the steady-state growth rate
A) affect; affect B) affect; not affect C) not affect; affect D) not affect; not affect
Preferences have just shifted away from beef and into mutton. If you are a sheep rancher, the best profit-maximizing strategy is to
A. shut down. B. cut prices to increase market share. C. produce as much as possible to earn profits in the short run. D. shift some of your ranching capacity into cattle raising.