For a firm to price discriminate,
a. it must be a natural monopoly.
b. it must be regulated by the government.
c. it must have some market power.
d. consumers must tell the firm what they are willing to pay for the product.
c
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What does the coefficient a in the new classical expression for short-run aggregate supply represent?
A) the full employment level of output B) the price level in the previous period C) how much output responds when the actual price level differs from the expected price level D) how much the price level responds when the actual level of output differs from the full employment level of output
Elasticity of demand is closely related to the slope of the demand curve. The more responsive buyers are to a change in price, the
a. steeper the demand curve will be. b. flatter the demand curve will be. c. further to the right the demand curve will sit. d. closer to the vertical axis the demand curve will sit.
If businesses are pessimistic, they are ________.
A. less likely to borrow and invest B. more likely to borrow and invest C. moving down, along the investment demand curve D. moving up, along the investment demand curve
A company has designed an alarm clock that "runs and hides" after going off, forcing the person to get up and find the alarm clock if he or she wants to shut off the alarm. According to behavioral economists:
A. it is unlikely to alter people's tendency to shut off the alarm and ultimately oversleep. B. the alarm clock keeps people from hitting the snooze button and taking advantage of the availability heuristic. C. the alarm clock serves as a precommitment device, helping the user to stick to the originally planned wake-up time. D. overconfidence effects will discourage use of such devices.