Price discrimination occurs when
A. Sellers charge two separate prices for the same product to separate consumers.
B. Minorities pay a higher price for a product than everyone else.
C. Sellers charge one price to all consumers but not wholesalers.
D. Sellers charge a higher price than is reasonable.
Answer: A
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During the American Revolution, the Pennsylvania legislature enacted price controls on essential commodities. The result of this legislation was
A. a large increase in the availability of those items, ending shortages. B. a severe shortage of those essential commodities. C. an increase in the price of those items, thus alleviating shortages. D. new efforts to increase production of those commodities. E. a minor inconvenience as persons adjusted to the new law.
The U.S. dollar will appreciate in value if
A) the demand curve for U.S. dollars shifts rightward. B) the demand curve for U.S. dollars shifts leftward. C) the supply curve of U.S. dollars shifts rightward. D) Americans choose to buy more foreign goods.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? A) The equilibrium point will move from E to C. B) The equilibrium point will remain at E. C) The equilibrium point will move from E to B. D) The equilibrium point will move from E to A.
Balance of payments issues are related to the relative value of different countries' currencies and the flow of goods, services, and financial assets among countries. The rate at which one country's currency can be traded for another is called:
A) the trade balance. B) capital inflows. C) capital outflows. D) the exchange rate.