Price discrimination means charging:
A. the same price to all buyers even if production costs are different.
B. higher prices to women and minorities.
C. different prices to different buyers for essentially the same good or service.
D. different prices for different products because production costs are different.
Answer: C
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Which of the following statements is true?
A) Although consumers reap some consumer surplus under a single-price monopoly, society is better off with optimal two-part tariff pricing. B) Of the three pricing schedules, single-price monopoly, an optimal two-part tariff, and perfect price discrimination, profit is highest under single-price monopoly pricing. C) Consumer surplus under perfect price discrimination is greater than under single-price monopoly pricing. D) Consumer surplus under an optimal two-part tariff is greater than that under single-price monopoly pricing.
Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP the the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
To maintain a fixed exchange rate, in response to an increase in the government budget deficit the central bank must
a. sell foreign currency from reserves. b. buy foreign currency. c. raise taxes. d. raise government spending. e. pass a law that increases the exchange rate.
Which of the following would NOT provide an incentive to reduce the amount of beef consumed?
A) an increase in the price of beef B) a subsidy to buyers of beef C) a decrease in the price of chicken D) a ban on beef sales by the Food and Drug Administration