Establishing different prices for similar products to reflect differences in marginal cost in providing those goods to different groups of buyers is

A homeowner making a mortgage payment is paying

A) a sunk cost which is consequently not a genuine cost at all. B) the cost of borrowing to purchase the house. C) the cost of constructing the house. D) the cost of purchasing the house. E) the cost of retaining ownership of the house.

In economic terms, tariffs are preferred to quotas because

A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) tariffs are easier to administer. D) quotas create a greater production inefficiency. E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.