If Mort's House of Flowers sells one dozen roses to different customers at different prices, economists would consider this an example of
A) rational ignorance. B) price discrimination.
C) price gouging. D) arbitrage.
B
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The production of capital is a form of roundabout production
a. True b. False
Ray Tucker has run his company, Tucker's Towing and Wrecking, for two years and has made an accounting profit of $34,000 each year. As long as Tucker's Towing continues to make accounting profits, it is rational for it to remain in the towing business
a. True b. False Indicate whether the statement is true or false
If a household's real taxes increase by one unit, then
a. real government transfers to the household decreae by one unit. b. the real return on capital services falls by one unit. c. real government transfers to the househould increase by one unit. d. real disposable income falls by one unit.
Suppose the wage rate in a certain industry falls, yet firms hire fewer workers. The best explanation of this is that labor:
A. demand fell. B. demand increased. C. supply fell. D. supply increased.