Which of the following is not a precondition for price discrimination?
A. The seller must be able to distinguish buyers with different elasticities of demand.
B. The good or service cannot be profitably resold by the original buyers.
C. The commodity involved must be a durable good.
D. The seller must possess some degree of monopoly power.
Answer: C
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According to aggregate demand and supply analysis, America's involvement in the Vietnam War had the effect of
A) increasing aggregate output, lowering unemployment, and raising the inflation. B) decreasing aggregate output, lowering unemployment, and lowering the inflation. C) increasing aggregate output, raising unemployment, and raising the inflation. D) decreasing aggregate output, raising unemployment, and lowering the inflation.
When the price of a bond is above the equilibrium price, there is an excess ________ bonds and price will ________
A) demand for; rise B) demand for; fall C) supply of; fall D) supply of; rise
Assume you pay a tax of $4000 on a taxable income of $24,000. If your taxable income were $30,000, your tax payment would be $5000. This tax structure is:
A. discriminatory. B. regressive. C. proportional. D. progressive.
The linkages of the interest-rate-based transmission mechanism of monetary policy are summarized as follows:
A. change in the money supply ? change in interest rates ? change in transactions balances ? change in government spending ? change in aggregate demand. B. change in the money supply ? change in speculative balances ? change in transactions balances ? change in planned investment ? change in aggregate demand. C. change in the money supply ? change in planned investment ? change in government spending ? change in aggregate demand. D. change in the money supply ? change in interest rates ? change in planned investment ? change in aggregate demand.