Customers who purchase an audio CD from Sally's Sounds are charged 20% more than customers who purchase the audio CD from the Sally's Sounds website. This is an example of
a. perfect price discrimination.
b. price discrimination.
c. deadweight loss.
d. socially inefficient output.
b
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A country's standard of living depends on its ability to produce goods and services
a. True b. False Indicate whether the statement is true or false
Estimates of the compensating wage differentials associated with particular job characteristics are valid only if
A. firms are willing to pay higher wages to more skilled workers. B. nonwage characteristics of the job are allowed to vary by sector. C. the firm provides nonpecuniary compensation for risks that workers encounter on the job. D. the compensating wage differential is positive. E. all other factors that influence worker's wages are held constant.
The fact that investors can always hold cash creates:
A. negative nominal interest rates. B. a problem for monetary policymakers when the short-term interest rates approach zero. C. an opportunity for the U.S. treasury to issue bonds that actually have negative nominal interest rates. D. an upward bound on nominal interest rates.
In the presence of a negative externality generated by producing a good, a competitive market will produce more of that good than is socially optimal
What will be an ideal response?