Which of the following is a necessary condition for price discrimination to be profitable?
a. All consumers must have identical preferences.
b. It must be easy to distinguish consumer groups with differing responses to higher prices.
c. The seller must face a horizontal demand curve for its product in at least one part of the market.
d. Both b and c are correct.
B
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Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions become more positive (or less negative). c. Real GDP Price Index falls, and current international transactions rises. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index falls, and current international transactions remain the same.
Which of the following equations is always correct in an open economy?
a. NX = Y - C - G - I b. NX = S - I c. NX = NCO d. All of the above are correct.
The most accurate measurement of unemployment
a) is an extrapolation based on a random survey of households b) counts the number of workers collecting unemployment insurance benefits c) uses payroll data by subtracting the number of workers employed at firms from the number of citizens of working age d) uses the number of layoffs reported to the government by employers e) none of the above
When Social Security checks were first issued the nominal amount:
A. regularly increased by 5 % every 3 months. B. regularly increased by 10 % every 3 years. C. stayed 3% above the poverty level for all recipients. D. stayed the same for the life of the payments.