Which of the following is true of a firm that can successfully practice price discrimination?
a. Its total revenue is often reduced.
b. It appropriates a part of the consumer surplus.
c. It has no way of distinguishing between types of customers.
d. It has no market power in the industry.
e. It must be a perfectly competitive firm.
b
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In the figure above, suppose the government provides vouchers worth $15,000 per student per year. When the market is in equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________
A) exceeds; above the efficient quantity B) exceeds; below the efficient quantity C) is below; above the efficient quantity D) is below; below the efficient quantity E) equals; efficient
Which of the following futures contracts is available on the various commodity exchanges in the United States?
A) Treasury bond futures B) Investment-grade bonds C) Over-the-counter stocks D) U.S. savings bonds
Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System (GPS), is an example of a government policy to promote economic growth by:
A. increasing the availability of natural resources. B. increasing physical capital. C. improving technology. D. increasing human capital.