Since monopolists that practice price discrimination generally increase market output, compared to a monopoly that charges a single price, practicing price discrimination generally leads to a smaller deadweight loss
a. True
b. False
Indicate whether the statement is true or false
True
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In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.06 B) 6.6 C) 66.6 D) 666
Suppose that the government collected taxes in the following fashion: people who earn less than $50,000 pay 25 percent in taxes, people who earn between $50,000 and $100,000 pay 35 percent in taxes, people who earn between $100,000 and $200,000 pay 30 percent in taxes, and people who earn more than $200,000 pay 28 percent in taxes. Which of the following statements is correct?
a. The tax system is proportional for income levels less than $50,000 and regressive for income levels above $50,000. b. The tax system is regressive for income levels less than $100,000 and progressive for income levels above $100,000. c. The tax system is progressive for income levels less than $100,000 and regressive for income levels above $100,000. d. The tax system is progressive for income levels less than $50,000 and proportional for income levels above $100,000.
Geometrically, the marginal product
A. is the slope of the average product curve. B. is the slope of the line joining the origin to the corresponding point on the total product curve. C. is that point at which the total product curve exhibits diminishing returns. D. at any point is the slope of the total product curve at that point.
If nominal interest rates increase:
A. the expected inflation rate must have gone up. B. either the expected inflation rate went down, the real interest rate went down, or both. C. either the expected inflation rate went up, the real interest rate went up, or both. D. the real interest rate must have gone up.