Refer to Figure 16-3. Suppose Chantal practices price discrimination. Which of the following statements is true?
A) By charging different prices in markets A and B, Chantal can transfer some producer surplus into economic profit.
B) Chantal's profits will be higher if she has uniform pricing instead of different prices for different groups of customers.
C) By charging a higher price in market B, Chantal has transferred some of the consumer surplus from customers in market B to customers in market A.
D) By charging a higher price in market B, Chantal can convert some consumer surplus into economic profit.
D
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Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the labor supply increases due to immigration, the new equilibrium is most likely to be
A) point h. B) point f. C) point d. D) point e. E) point b.
To induce an agent to work hard, a principal may offer the agent a bonus, in other words, an extra payment if a performance target is hit
Suppose that the agent's performance is affected by factors beyond the agent's control, for example umbrellas are demanded more on a rainy day. Under what conditions may the bonus not induce the agent to work harder? A) The agent is very risk averse. B) The agent is very risk loving. C) The agent is risk neutral. D) The principal is risk neutral.
In 1950, Social Security benefits increased by over 50 percent
a. True b. False
All of the following are regulatory agencies EXCEPT
A) the National Rifle Association. B) the Environmental Protection Agency. C) the Food and Drug Administration. D) the Occupational Safety and Health Administration.