In order to be a successful price discriminator, a provider must have a degree of market power (depicted by a downward-sloping demand curve) and meet what other condition(s)?
a. Prospective customers must be categorized according to willingness-to-pay.
b. Opportunities for resale of the good or service must be limited.
c. Customers cannot know that multiple prices are being charged.
d. The provider must have excess capacity to accommodate the extra business.
e. Both a and b.
E
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The real interest rate is negative if the inflation rate
A) equals zero. B) is less than the nominal interest rate. C) exceeds the nominal interest rate. D) is equal to the nominal interest rate. E) exceeds the real interest rate.
The demand curve for an inferior good can never be downward sloping
Indicate whether the statement is true or false
Pharmaceutical development provides a good example of rent-seeking behavior, the pursuit of which results in _______.
a. lower economic activity by diverting resource to less-productive uses b. lower prices throughout the economy c. increased economic activity by promoting efficiency d. a more equitable distribution of income and wealth e. greater income and wealth in the private sector
Imports are a leakage in the sense that
A. the international financial system is unstable. B. consumers buy foreign output of goods and services. C. foreigners earn less than U.S. workers. D. a trade deficit increases aggregate demand.