Refer to Figure 16-1. What is the price charged under perfect price discrimination?
A) P3
B) P4
C) a range of prices corresponding to the demand curve from P3 and above
D) a range of prices corresponding to the demand curve from P4 and above
C
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The long-run rate of unemployment to which an economy always gravitates is the
A) normal rate of unemployment. B) natural rate of unemployment. C) neutral rate of unemployment. D) inflationary rate of unemployment.
If firms pollute when they produce:
a. marginal social cost equals marginal private cost. b. marginal private cost exceeds marginal social cost. c. marginal social cost exceeds marginal private cost. d. marginal social cost equals marginal external cost.
Intertemporal substitution dictates that
a. people will work less in periods of high productivity. b. people will spend more in periods of high productivity. c. people will work more in periods of high productivity. d. people will spend less in periods of high productivity.
When the government attempts to improve equality in an economy the result is often
a. an increase in overall output in the economy. b. additional government revenue since overall income will increase. c. a reduction in equality. d. a reduction in efficiency.