Which is the best example of price discrimination?
A. An airline company charging lower fares per pound for air freight than for passengers
B. A telephone company charging lower rates to weekend users than weekday users
C. A supermarket charging lower prices in its city stores than its out-of-the-way rural store
D. A private doctor charging higher fees to patients receiving special services than patients receiving regular services
B. A telephone company charging lower rates to weekend users than weekday users
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The GDP price index
A) can be interpreted as 100 multiplied by real GDP divided by nominal GDP. B) is the difference between nominal GDP and real GDP. C) measures the average price level. D) can be interpreted as real GDP minus nominal GDP and the resulting difference then multiplied by 100. E) is equal to between real GDP minus nominal GDP.
You and a friend are arguing over the issue of the nonneutrality of money. You believe that money is not neutral, and to prove your point you would cite all of the following except
A) large gold discoveries that increased the money supply preceded an economic boom. B) a change in monetary institutions preceded a boom or recession. C) a change in the leadership of the Fed and its policy was followed by noticeable changes in the money supply and a recession or inflation. D) the fact that every recession was preceded by a drop in the money supply.
When supply and demand for a product decrease simultaneously, we
A) can predict that both equilibrium price and quantity will increase. B) can predict that both equilibrium price and quantity will decrease. C) cannot predict equilibrium price, but know that equilibrium quantity will decrease. D) cannot predict the change in either the equilibrium quantity or equilibrium price.
The greater the number of different goods available in an economy, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. e. more likely it is that individuals are producing only goods they want to consume.