A price discriminating firm will tend to charge a ________ price for the category of customer with the ________ elasticity of demand
A) higher; higher
B) higher; lower
C) lower; lower
D) 100 percent markup; infinite
B
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A juice company moves from a small kitchen into a large former soda factory that provides space for future expansion. Which of the following offers the best explanation of why average total costs are high as production gets underway in the new plant?
a. Most of the staff is inexperienced. b. The building is being underutilized. c. Ingredients are often seasonal. d. The firm offers volume discounts.
Which of the following could cause a recession?
a) An increase in consumption b) An increase in saving c) An increase in investment d) An increase in government purchases e) An increase in exports
Which situation would most likely cause a nation's production possibilities curve to shift inward?
A. An increase in foreign trade B. The destruction from bombing and warfare in a losing military conflict C. An increase in the number of skilled immigrant workers D. The construction of more capital goods
Answer the following statements true (T) or false (F)
1) The business cycle is primarily concerned with changes in the level of overall prices over time. 2) A sometimes short, sometimes extended period of declining output and living standards is referred to as a recession. 3) The business cycle reflects both short-run fluctuations in output and long-run economic growth. 4) Economists and policymakers are generally more concerned about nominal GDP than real GDP. 5) Nominal GDP measures a nation's output in current year prices.