Relative to a monopolist charging a single price to all consumers, price discrimination ________ total economic surplus.
A. sometimes increases and sometimes decreases
B. decreases
C. has no effect on
D. increases
Answer: D
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Which of the following is a consequence of minimum wage laws?
A) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. B) Employers will be reluctant to offer low-skilled workers jobs with training. C) All workers benefit when the minimum wage is increased. D) Low-skilled workers benefit because minimum wage increases the number of jobs providing low-skilled workers with training.
Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:
A. lenders want to be compensated for being unable to get their money back quickly. B. the opportunity cost increases over time. C. there's more uncertainty about potential future investment opportunities. D. All of these are true.
Laws that require children to be inoculated against certain diseases before they enter kindergarten are examples of the command approach
a. True b. False Indicate whether the statement is true or false
You have $1,000 in your checking account at Generous Savings and Loan (GSL). GSL holds $300 of your money in reserve and makes a $700 student loan to Wilma, who promises to repay the loan with interest. Wilma now has an additional $700 in her checking account. By how much has the money supply M1 increased?
a. $2,000 b. $1,700 c. $1,000 d. $700