Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of:
A) collusion.
B) price discrimination.
C) two-part tariff.
D) bundling.
E) none of the above
E
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At the profit-maximizing level of employment, the monopsonist
A) pays a wage equal to MRP. B) pays a wage greater than MRP. C) pays a wage less than MRP. D) pays a wage equal to MFC.
Net exports:
a. will increase if exports of goods decline. b. will increase if imports of goods rise. c. in our GDP accounts permit estimation of foreign ownership of American businesses. d. include budgetary outlays of the federal government. e. is the net effect of the foreign trade sector on GDP.
Which condition is the Nash equilibrium for this scenario?
a. Each firm charges $9.
b. Each firm charges $10.
c. Firm A charges $10 while Firm B charges $9.
d. Firm B charges $10 while Firm A charges $9.
Crowding out occurs because expansionary fiscal policy:
A) appreciates the exchange rate. B) lowers foreign income. C) lowers the interest rate. D) increases net exports.