Why doesn't a firm price discriminate based on income levels?
A) It would be nearly impossible to conveniently confirm any individual's income level.
B) It is illegal to ask someone their income levels.
C) It is immoral to price discriminate based on income levels.
D) They do: It is common practice for firms to price discriminate based on income.
A
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Suppose the government has a $900 billion budget deficit. If the government borrows $560 billion to finance this deficit and finances the rest by printing money, the amount of new money created will be
A) $340 billion. B) $560 billion. C) $900 billion. D) $1,460 billion.
Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
Purchasing power parity may not hold in practice due to all of the following except
A) transportation costs. B) cross-country differences in environmental regulations. C) trade barriers like tariffs and quotas. D) the existence of non-traded goods.
In the late-19th century, farmers blamed their problems on a number of factors. Which of these complaints is supported (somewhat) by quantitative evidence gathered by economic historians?
a. Eastern bankers conspired to inflate interest rates on western farm mortgages. b. Manufacturers charged unreasonably high prices for farm equipment. c. Consumer goods prices were rising too rapidly. d. Certain sections of railroad were monopolized, resulting in unreasonably high freight rates.