It is easier for a monopolist to price discriminate between groups for a service than for a good because
A) it is easier to calculate average willingness to pay for services.
B) it is easier to distinguish between groups of customers for services than customers for goods.
C) it is easier for consumers to resell goods than resell services.
D) customers for goods usually do not differ with respect to their average willingness to pay.
C
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Usually an abundance of natural resources ________ average labor productivity.
A. has no effect on B. decreases C. increases D. doubles
When the domestic currency is initially overvalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________
A) purchase; decline B) sell; decline C) purchase; increase D) sell; increase
Which of the following decreases in labor demand is due to a change in the price of a related resource?
A. The rise of hair salons for both men and women reduces the demand for barbers. B. A decline in the demand for computers in Europe reduces the demand for workers in the domestic computer industry. C. An increase in the price of chemical equipment increases the cost of producing fertilizer, thus decreasing the demand for workers who make fertilizer. D. A decrease in the educational skills of manufacturing workers decreases the demand for such workers.
The table shows the aggregate demand and aggregate supply schedule for a hypothetical economy.Real Domestic Output Demanded (in Billions)Price Level (Index Value)Real Domestic Output Supplied (in Billions)$3,000350$9,0004,0003008,0005,0002507,0006,0002006,0007,0001505,0008,0001004,000Refer to the above table. Using the original data from the table, if the quantity of real domestic output demanded increased by $3000 and the quantity of real domestic output supplied increased by $1000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A. 300 and $9000. B. 250 and $8000. C. 200 and $7000. D. 350 and $8000.