During the holiday season, high-end retailers frequently place a high price on merchandise on weekends and discount the price during the week. They do this because they believe that two groups of customers exist: shoppers with little free time and bargain hunters. Bargain hunters have time to shop around and frequently shop during the week. What do economists call this price strategy used by
high-end retailers?
a. oligopoly
b. price discrimination
c. compensating differential
d. in-kind transfers
b
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Which of the following is TRUE of the portion of the net public debt held by foreign residents?
A) It will definitely be a benefit to current and future generations of U.S residents, because foreign residents have shown a willingness to lend to the U.S. government in exchange for rates of return significantly lower than they can receive elsewhere in the world. B) It will be a benefit to future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents C) It will definitely be a burden on current and future generations of U.S. residents who will have to pay interest on this portion of the debt, thereby transferring a portion of future U.S. incomes abroad. D) It will be a burden on future generations of U.S. residents only if funds that the U.S. government obtains from borrowing are expended on projects with rates of return lower than the rates of interest that the government pays foreign residents.
Which of the following calculations is necessary to determine whether a regulation should be implemented?
a. Marginal cost-marginal revenue calculations b. Cost effectiveness calculations c. Total cost-total revenue calculations d. Cost minimization calculations e. Cost-benefit calculations
Which of the following would be counted in 2013's GDP?
A) the value of a bond sold by the federal government B) the value of a loan you take in 2013 C) the value of a TV that was produced in 2012 but not sold until 2013 D) the bonus check a stockbroker gets from his/her company in 2013
If a country has a collapsing currency due to large budget deficits financed by monetary expansion, the cure is to
A) default on sovereign debt and restructure the economy. B) peg the currency to something different. C) cut the deficit and raise interest rates. D) increase the rate of inflation to reduce the real value of government debt.