A third-degree price-discriminating pure monopoly will follow a system where ________.
A. buyers with relatively more inelastic demands are charged lower prices than buyers with relatively more elastic demands
B. the price of the product is held the same even if the demand changes
C. buyers with relatively more inelastic demands are charged higher prices than buyers with relatively more elastic demands
D. all buyers are charged the same price regardless of their elasticity of demand
Answer: C
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Which of the following is an example of a natural experiment?
A) A research on the effectiveness of a new medicine among some voluntary participants B) A study on the benefits of regular exercise by paying for the membership fees at fitness clubs for one-half of the participants C) A laboratory research on the effectiveness of solar power as an alternative source of fuel D) A research on the effect of air pollution on lung disorders by observing the health conditions of people who stay close to industrial areas and those who stay away from industries
To borrow funds between tax payment dates, city governments can issue
A) tax anticipation notes. B) corporate bonds. C) general obligation bonds. D) revenue bonds.
Suppose Luke values a scoop of Italian gelato at $4 . Leia values a scoop of Italian gelato at $6 . The pre-tax price of a scoop of Italian gelato is $2 . The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5 . The deadweight loss from the tax is
a. $4, and the deadweight loss comes from both Luke and Leia. b. $4, and the deadweight loss comes only from Luke because he does not buy gelato after the tax. c. $2, and the deadweight loss comes from both Luke and Leia. d. $2, and the deadweight loss comes only from Luke because he does not buy gelato after the tax.
As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?
A) the total amount of resources employed B) the level of technology C) the level of efficiency of some factors of production D) the amount of each good or service produced