Wally’s Wallets has a near monopoly on wallets made of rare tree bark. Wally’s knows that people in urban technology centers pay more for these wallets than anyone else. Oftentimes, Wally’s Wallets are seen being offered to consumers at marked-up prices on third-party online shopping sites. Which factor necessary for price discrimination is Wally’s missing?
a. market segregation
b. market power
c. few available substitutes
d. difficulty in reselling
d. difficulty in reselling
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Complete price stability would be the result of
A) inflation. B) an inflation rate of zero. C) deflation. D) hyperinflation.
The above figure shows the U.S. market for flip-flops. With international trade, U.S. consumers buy ________ flip-flops and U.S. producers produce ________ flip-flops
A) 500,000; 500,000 B) 300,000; 700,000 C) 700,000; 500,000 D) 700,000; 300,000 E) 500,000; 300,000
What does the law of diminishing returns imply for the shape of the marginal cost curve?
What will be an ideal response?
During a recession, government deficits can grow because:
A. government spending often increases as part of an expansionary fiscal policy. B. income tax revenues tend to decrease because people are earning less. C. sales tax revenues tend to decrease because people are spending less. D. All of these are true.