If the French government increases its expenditures and reduces taxes, then France's interest rate
a. and its exchange rate rise.
b. rises and its exchange rate falls.
c. falls and its exchange rate rises.
d. and its exchange rate fall.
a
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Suppose a restaurant is trying to determine how much to charge for a bowl of chili, and decides to run an experiment to see how much its customers are willing to pay by allowing them to set their own price for this menu item
a. Is charging a customer the price he or she is willing to pay for the bowl of chili an example of price discrimination? Briefly explain. b. What is it called when a firm knows every consumer's willingness to pay, and can charge every consumer a different price? What happens to consumer surplus in this situation?
In the short run, producers derive surplus from market exchange because
a. total revenue is greater than the minimum they would require to sell the good b. total revenue is equal to the minimum amount they would require to sell the good c. total revenue is less than the minimum amount they would require to sell the good d. marginal revenue equals average revenue e. they can rob consumers of most of their consumer surplus
In what three ways do people use their time?
a. market work, selling labor in the labor market, and leisure b. producing their own goods and services, nonmarket work, and market work c. nonwork, work, and leisure d. market work, nonmarket work, and leisure e. market work, nonwork, and leisure
Which of the following will increase economic freedom?
a. subsidies and regulations that favor business b. high tariff rates c. high marginal tax rates d. protection of persons and their property from aggression