Under what conditions can sellers engage in price discrimination?
What will be an ideal response?
Price discrimination occurs when sellers can charge different individuals or groups different prices for the same product. They can more easily do this if consumers do not have full information about a product and they negotiate a price with each individual separately. This occurs in automobile dealerships, in airline pricing, and with college tuition. It occurs with products that are not purchased regularly.
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The number of job seekers in any sector of the economy ordinarily exceeds, by at least a small amount, the number of jobs available. Thus, employers
A) could increase their net revenue by lowering wages. B) could increase their net revenue by raising wages. C) do not pay close attention to marginal cost and marginal revenue in setting wages. D) face the threat of unionization. E) want employees to value their current jobs significantly more highly than they value alternative jobs.
A society without any money:
A. would have to rely on barter. B. could never exchange goods and/or services. C. would find people doing everything for themselves. D. would be more efficient since people would be more self-sufficient.
All of the following issues have been discussed as options for reforming the international financial architecture EXCEPT
A) how high an interest rate the lender of last resort should charge when it makes loans. B) the length of the payback period. C) the size of the loans. D) if the lender of last resort (i.e., the IMF) should consult and collaborate with other international institutions such as the United Nations and the WTO.
If the government began providing free textbooks to college students who would otherwise have bought their books from the private sector, the government's action would result in
A. an increase in real Gross Domestic Product (GDP). B. a Ricardian dilemma. C. a free market equilibrium. D. a direct expenditure offset.