Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment
B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss
C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics
D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
C
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Which one of the following factors contributed to the decline in real output during the Great Depression?
a. deflation, which changed the terms of long-term contracts and discouraged long-term exchange b. inflation, which reduced the value of the dollar and eroded the savings of the elderly c. stable monetary policy, which caused business decision makers to lose confidence in the Fed's ability to fine-tune the economy d. establishment of the Federal Deposit Insurance Corporation
Large firms can take advantage of economies of ___________.
Fill in the blank(s) with the appropriate word(s).