Monopolists who perfectly price discriminate produce the socially efficient level of output.
Answer the following statement true (T) or false (F)
True
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In a perfectly competitive market in the short run, as the market demand increases, the firms ________ their output and their economic profit ________
A) increase; increases B) increase; decreases C) decrease; decreases D) decrease; increases
More than a quarter of the population experiences ________ poverty at some point in their lives, perhaps due to losing a job or experiencing sickness or injury.
A. transient B. abject C. chronic D. None of these is true.
Suppose that Linda's parents offer her a choice of presents for her graduation: $500 today to buy herself a bike, or $500 two years from now. If Linda has a positive rate of time preference, which would she prefer, and why?
a. $500 today is preferred to $500 two years from now because Linda values present consumption more than future consumption. b. $500 two years from now is preferred to $500 today because Linda knows her parents will give her more than $500 after two years. c. $500 two years from now is preferred to $500 today because Linda values future consumption more than present consumption. d. $500 today is preferred to $500 two years from now because Linda plans to invest the money and earn higher returns after two years.
Quinn has job offers in Wrexington and across the country in Charlieville. The Wrexington job would pay a salary of $50,000 per year, and the Charlieville job would pay a salary of $40,000 per year. The CPI in Wrexington is 150, and the CPI in Charlieville is 90. Refer to Scenario 24-4. If Quinn only cares about maximizing her purchasing power, then she should
a. take the Charlieville job. b. take the Wrexington job. c. take either job because they both have the same purchasing power. d. The answer cannot be determined from the information given because a salary is not the same as purchasing power.