Price discrimination adds to social welfare in the form of (i) increased total surplus. (ii) reduced costs of production. (iii) increased consumer surplus

The Fed uses operating targets as well as intermediate targets because

A) the Federal Reserve Act of 1913 requires it to do so. B) the Fed controls intermediate targets only indirectly. C) the public is much more unfamiliar with the variables used as operating targets, so for policy to be effective intermediate targets must also be announced. D) if one set of targets proves ineffective in attaining policy goals, the other set is available.

In moving along a supply curve, which of the following is not held constant?

A. The number of firms producing this good. B. Expectations about the future price of the product. C. Techniques used in producing this product. D. The price of the product for which the supply curve is relevant.