For consumers who opt to pay a $10 monthly fee to have unlimited texting on their cell phones, but choose not to pay a $5 monthly fee to have unlimited call minutes, the unlimited texting option has a ________ than the unlimited minutes option.
A. lower price elasticity of demand
B. lower cross-price elasticity of demand
C. higher price elasticity of demand
D. higher cross-price elasticity of demand
Ans: A. lower price elasticity of demand
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Suppose the world price of a television is $300 . Before Paraguay allowed trade in televisions, the price of a television there was $350 . Once Paraguay began allowing trade in televisions with other countries, Paraguay began
a. importing televisions and the price of a television in Paraguay decreased to $300. b. importing televisions and the price of a television in Paraguay remained at $350. c. exporting televisions and the price of a television in Paraguay decreased to $300. d. exporting televisions and the price of a television in Paraguay remained at $350.
There is a futures contract for the purchase of 1,000 bushels of corn at $3.00 per bushel. At the end of the day when the market price of corn falls to $2.50:
A. nothing happened since no funds are transferred until the settlement date. B. nothing happens since marked to market adjustments only occur if the market price rises above the contract price. C. the buyer (long position) needs to transfer $500 to the seller (short position). D. the seller (long position) needs to transfer $500 to the buyer (short position).
When firms price discriminate they turn ________ into ________
A) producer surplus; revenue B) consumer surplus; profit C) total cost; profit D) producer surplus; consumer surplus
Which of the following programs are in-kind?
A. EITC B. AFDC/TANF and EITC C. AFDC/TANF D. WIC