For most residential telephone service, people pay a monthly fee to have a hookup to the telephone company's line plus a fee for each call actually made. Under this pricing scheme, the telephone company is using
A) limit pricing.
B) a two-part tariff.
C) second-degree price discrimination.
D) two stage price discrimination.
B
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If a production quota is set below the equilibrium quantity, at the quota quantity, marginal benefit is ________ marginal cost and the level of production is ________
A) greater than; inefficient B) greater than; efficient C) less than; inefficient D) equal to; efficient
Efforts to raise money for local charities illustrate which of the following?
a. Using social pressure to produce a public benefit b. Relying on society to develop positive externalities c. Creating nonexcludable but rivalrous resources d. Distributing private benefits throughout society
Lorenz curves supposedly reflect the disparities of standards of living among people living in a society but they cannot take into account factors that can greatly affect the disparities. Among them are all the following except
a. the size of population b. the availability of public housing and housing subsidies c. national health care systems d. national education systems e. social security programs