Which of the following statements about price discrimination is false?
A. It is often a disguised subsidy to the poor.
B. It involves charging at least two separate prices for the same good or service.
C. Perfect price discrimination eliminates some of the customer's consumer surplus.
D. It is legal in the United States.
C. Perfect price discrimination eliminates some of the customer's consumer surplus.
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Currently, union membership in the U.S. is
a. declining as a percentage of the labor force b. remaining constant c. increasing as a percentage of the labor force d. increasing in the service sector e. decreasing among government employees
Which of the following statements is correct?
a. A high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection. b. A low-risk person is more likely to apply for insurance than a high-risk person because a low-risk person would benefit more from insurance protection. c. Insurance companies can fully guard against the problem of adverse selection, but they cannot fully guard against the problem of moral hazard. d. Insurance companies can fully guard against the problem of moral hazard, but they cannot fully guard against the problem of adverse selection.
If a buyer who wants product A is required by the seller to buy its products B and C as well, this is called:
A. An exclusive contract B. Profit maximization C. Competitive pricing D. A tying contract
Which of the following is a valid explanation for real wage growth?
A. The rising cost of capital accumulation B. A contraction of employment in manufacturing industries C. An increase in the quantity of labor D. A rising rate of labor productivity growth