A country’s GDP per capita is calculated by dividing the GDP by _______.
a. purchasing power parity (PPP)
b. exchange rate
c. GDP over time
d. population
d. population
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The potential for a decline in product quality due to asymmetric information is commonly referred to as
A) the lemons problem. B) planned obsolescence. C) diminishing marginal product. D) the externality problem.
Of the following, which is not an economic rationale for public utility regulation?
a. production process exhibiting increasing returns to scale b. constant cost industry c. avoidance of duplication of facilities d. protection of consumers from price discrimination e. none of the above
Assume a small town decides to build a park by imposing a $2,000 lump-sum tax on each household. If a household's income rises from $50,000 to $75,000 . its marginal tax rate is:
a. 0% b. 2.67% c. 4% d. 8%
Price fixing is collusive and illegal under U.S. antitrust laws. Predatory pricing, price discrimination, and tying have less obvious effects and are sometimes practiced by non- colluding oligopolists. Describe at least two of these strategies and explain the circumstances under which they raise regulatory concern.
What will be an ideal response?