Price discrimination, where different units of a good are sold for different prices
A) is impossible because there can only be one market price.
B) can be effectively practiced by all monopolists.
C) maximizes consumer welfare because each consumer pays only the price he or she is willing to pay.
D) is possible if the good cannot be resold.
D
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The economist known for his early empirical work supporting the efficient markets hypothesis is
A) Milton Friedman. B) John Muth. C) Eugene Fama. D) Glenn Hubbard.
Which of the following might be considered a positive externality?
A) the pollination of an orange grove due to bees kept by a nearby beekeeper B) individuals who did not get the flu, yet did not receive a flu shot when those around them did receive the shot C) better fishing resulting from increased lake temperatures generated by the nearby power plant D) All of the above are correct.
When spending by the federal government exceeds net taxes, _____
a. the price level tends to fall b. the money supply must fall c. the aggregate demand curve shifts rightward d. aggregate supply moves rightward e. there is a federal budget surplus
What is the difference between shutting down and exiting a market?
a. Shutting down means to leave temporarily; exiting means to leave permanently. b. Shutting down means to close some operations; exiting means to close all operations. c. Shutting down means to leave permanently; exiting means to leave temporarily. d. Shutting down means to close all operations; exiting means to close some operations.