Insurance companies typically charge women lower prices than men for automobile insurance. Is this an example of price discrimination?
A) Yes, because insurance companies can prevent arbitrage; that is, women cannot transfer their insurance coverage to men.
B) No, because there are too many insurance companies for any one company to have market power. A firm must possess market power in order to practice price discrimination.
C) No, because, on average, women have better driving records than men and the costs of insuring men are greater than the costs of insuring women.
D) Yes, because the costs of selling insurance to men and women are the same.
C
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If the federal government tries to make fiscal policy sustainable by increasing taxes on wages, the opportunity cost of leisure will ________ and will result in ________ potential GDP
A) increase; lower B) decrease; higher C) decrease; lower D) increase; higher
A worker would be hurt least by inflation when the:
a. worker anticipates inflation and increases savings at the bank. b. worker is protected by a cost-of-living adjustment clause in an employment contract. c. price level increases but at a decreasing rate. d. worker is protected by fixed annual increases in wages and benefits in an employment contract.