An example of "cream skimming" is when:
a. a firm charges the same price to all consumers, even though costs for some are higher
b. a firm offers a reduced price to the best-paying customers of their competitors
c. a firm offers a reduction in price on a package sale of two items
d. none of these
b
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The private sector balance equals
A) saving minus investment. B) net taxes minus government expenditures. C) investment minus saving. D) net taxes plus government expenditures. E) saving plus investment.
When comparing point A, which lies within a utilities possibilities frontier, with point B, which lies on the same utilities possibilities frontier,
A) A is necessarily more efficient than B. B) A is necessarily more equitable than B. C) B is necessarily more efficient than A. D) B is necessarily more equitable than A.
When the parties to a deal have access to different information:
A. markets will be efficient. B. parties will voluntarily share information truthfully in order to achieve efficiency. C. markets may fail to exist in such cases. D. parties will blindly trust one another.
Which of the following is characteristic of a monopolistically competitive firm?
a. The firm faces an upward-sloping demand curve. b. The firm faces an inelastic demand curve. c. The firm faces a horizontal demand curve. d. The firm produces a differentiated product.