Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?
A) A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys.
B) A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm.
C) A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage.
D) An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.
A
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One tenet of classical economics is that
A) the role of the government should be limited, since the market will always be self-correcting. B) the government should set a minimum wage slightly above the natural market equilibrium rate. C) the government should intervene whenever necessary to avoid any unemployment. D) wages and prices are "sticky downward."
What would be the direct effect of a reduction in the U.S. selling price of Japanese-made cars on the U.S. demand for Japanese-made cars?
A) No effect, because price changes affect quantity demanded, not demand. B) The demand would decrease. C) The demand would increase. D) We cannot tell unless we know the elasticities of demand for Japanese-made and American-made cars. E) We cannot tell unless we know whether more cars can be imported from Japan.
On January 25, 2009, one U.S. dollar traded on the foreign exchange market for about 0.75 euros. Therefore, one euro would have purchased about ________ U.S. dollars
A) 0.75 B) 1.00 C) 1.33 D) 1.75
Indicate for which of the following examples you cannot use Entity and Time Fixed Effects: a regression of
A) OECD unemployment rates on unemployment insurance generosity for the period 1980-2006 (annual data). B) the (log of) earnings on the number of years of education, using the Current Population Survey of 60,000 households for March 2006. C) the per capita income level in Canadian Provinces on provincial population growth rates, using decade averages for 1960, 1970, and 1980. D) the risk premium of 75 stocks on the market premium for the years 1998-2006.