The reason that the local telephone company is able to engage in price discrimination between business and residential customers in providing local phone service is that:
A. it is the only provider of local (landline) telephone service.
B. it must be extremely difficult, if not impossible, for one consumer to resell phone service to another.
C. business and residential customers differ in their willingness to pay for phone service.
D. All of these are correct.
Answer: D
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An improvement in production technology will
A. shift the demand curve to the left. B. shift the supply curve to the left. C. shift the supply curve to the right. D. increase equilibrium price.
The terminal nodes in an extensive form representation
a. are used solely to show payoffs that represent a Nash equilibrium. b. represent the starting points for a sequential game c. indicate the strategies available to the players of a game. d. indicate the possible outcomes of a game
In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:
A. $11,250. B. $3,750. C. $1,250. D. $60,000.
Refer to the above graph. Automatic stability in this economy could be decreased by:
A. shifting the government expenditure line upward but parallel to its current position. B. changing the tax system so that the tax line has a flatter slope. C. changing the tax system so that the tax line is shifted upward but parallel to its present position. D. changing the government expenditures line so that it has a negative slope.