Which of the following is NOT an example of the hurdle method of price discrimination?
A. Permanently reducing all prices by 10 percent.
B. Charging less for airline tickets if the trip includes a Saturday night stayover.
C. Offering a mail-in rebate.
D. Giving a discount on movie tickets to people with a student ID.
Answer: A
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The balance of payments has become a central issue for the United States because
A) when the balance of payments is not balanced, society is unbalanced. B) the U.S. economy cannot grow when the balance of payments is in deficit. C) the U.S. has run huge trade deficits in every year since 1982. D) the U.S. never experienced a surplus in its balance of payments. E) the U.S. once ran a large trade surplus of about $40 billion.
A decline in domestic output would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
For a vertical demand curve,
a. the slope is undefined, and the price elasticity of demand is equal to 0. b. the slope is equal to 0, and the price elasticity of demand is undefined. c. both the slope and price elasticity of demand are undefined. d. both the slope and price elasticity of demand are equal to 0.
Refer to Figure 7.2. If Happy Times Theater charges one price to day customers and another price to night customers, then the night price will be
A. $5.50. B. $6.25. C. $7.50. D. $10.00.