Perfect price discrimination:
A. requires each customer to pay exactly his or her willingness to pay.
B. maximizes consumer surplus.
C. is not efficient.
D. minimizes producer surplus.
A. requires each customer to pay exactly his or her willingness to pay.
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How will an increase in federal government spending without an increase in taxes affect real GDP and the price level in the short run in a closed economy and in an open economy?
What will be an ideal response?
Which of the following is a reason why a country barely at subsistence levels cannot achieve growth very easily?
a. It cannot decrease capital goods in order to increase consumption goods. b. The lower income means that Say's law does not apply here. c. Too much savings exist and therefore it remains underutilized. d. It cannot decrease consumption goods in order to increase capital goods. e. It cannot decrease capital goods in order to also decrease consumption goods.
Suppose the country of Mankiwland has a new king, King Gregory. For the purpose of efficiency King Gregory's chief economic advisor would encourage him to design his country's tax system to minimize (i) deadweight losses from taxes. (ii) administrative burdens from taxes. (iii) the tax payments themselves. (iv) government expenditures to correct for market failures
a. (i) only b. (i) and (ii) only c. (iii) and (iv) only d. (i), (ii), (iii), and (iv)
If the CPI rises, the number of dollars needed to buy a representative basket of goods
a. increases, and so the value of money rises. b. increases, and so the value of money falls. c. decreases, and so the value of money rises. d. decreases, and so the value of money falls