When car dealerships post high prices for their cars and then negotiate deals based on their estimate of how much each person will pay,
a. the dealership will lose revenue
b. marginal revenue and marginal cost are being used to set prices and output
c. few dealerships will be able to survive
d. rent-seeking behavior will lead new dealerships to enter the market
e. this is a form of price discrimination
E
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The goal of the World Bank is to
A) sell the government securities of member nations on the open market. B) supervise exchange rate stability. C) help finance economic development. D) supervise the activities of the central banks of member nations.
The system of accounts for each country, based on the circular flow, whose purpose is to measure the level of economic activity is called:
A) the underground economy. B) national income accounting. C) bookkeeping. D) none of the above.