Price discrimination is the practice of
A) charging different prices for the same good when the price differences arise because of differences in cost.
B) charging different prices for the same good when the price differences are not due to differences in cost.
C) charging higher prices for brand-named goods and lower prices for generic versions of the goods.
D) charging different prices for different qualities of a product.
B
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Why does an increase in the price level tend to cause the consumption function to shift downward?
A. An increase in the price level decreases disposable income. B. An increase in the price level increases the demand for fixed money assets. C. An increase in the price level decreases the value of fixed money assets. D. An increase in the price level decreases saving and increases debt.
The recession of 2007-2009 made many consumers pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve. B) This will move the economy up along a stationary aggregate demand curve. C) This will shift the aggregate demand curve to the left. D) This will shift the aggregate demand curve to the right.
What is the Earned Income Tax Credit?
What will be an ideal response?
If the demand curve is vertical, the elasticity is
a. 1.0. b. 0.0. c. 0.5. d. infinite.