A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida
A) has an elasticity of -6.0.
B) is more price elastic than the demand in New York.
C) has an elasticity of -1.2.
D) has an elasticity of -0.67.
C
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All of the following are assumptions of the classical model EXCEPT
A) inflexible wages. B) self-interest of economic actors. C) pure competition. D) absence of money illusion.
European Union labor costs exceed U.S. and British labor costs primarily because
a. worker productivity is lower in the EU b. union wages are higher in the EU c. layoffs and plant closings are more restrictive in the U.S. and Britain d. the amount of paid time off is higher in the EU e. labor-management relations are better in the EU
Suppose you owned a nationally chartered bank. Your bank assets will increase when
a. the Fed buys government bonds from your bank on the open market b. the Treasury sells government bonds to your bank on the open market c. depositors take funds out of their demand deposit accounts at your bank d. the Fed sells government bonds to your bank on the open market e. the Fed lowers the discount rate
Which of the following is defined as a rate of downward movement in the price level for an aggregate of goods and services?
A. Price index B. Reinflation C. Deflation D. Inflation