In order to practice price discrimination, a firm must:
A. avoid detection by the government.
B. be able to divide consumers into groups with different demands for their product.
C. have a homogeneous product.
D. advertise their product.
Answer: B
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If the production of a good causes an external cost, then the efficient quantity is
A) equal to the quantity at which the marginal benefit equals marginal cost. B) less than the quantity at which the marginal benefit equals the marginal cost. C) more than the quantity at which the marginal benefit equals the marginal cost. D) the quantity at which the marginal private benefit is greater than the marginal social benefit. E) None of the above answers is correct.
Which of the following is definitely true when nominal GDP increases?
A. The standard of living improves. B. The amount of output increases. C. The value of output increases. D. The production possibilities curve shifts outward.
Employers can find themselves in an adverse selection problem if there are too:
A. many applicants for each job. B. few applicants for each job. C. many qualified applicants for each job. D. many underqualified applicants for each job.
When the price of a good decreases, the budget constraint does not change.
Answer the following statement true (T) or false (F)