Racial discrimination and other forms of discrimination based on irrelevant factors are illegal. Can price discrimination be illegal as well?
What will be an ideal response?
In 1936, Congress passed the Robinson-Patman Act which outlawed price discrimination if it resulted in less competition. However, the language used in the act made it seem that all price discrimination that was not based on differences in cost was illegal. Courts render judgments regarding violations of acts of Congress based on how they interpret the language used in these acts. In recent years, the courts have interpreted the Robinson-Patman Act narrowly; that is, price discrimination as practiced by the airlines, colleges and universities, and other firms is not considered to be illegal.
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According to the short-run Phillips Curve, there is a trade-off between
(a) interest rates and inflation (b) the growth of the money supply and interest rates (c) unemployment and economic growth (d) inflation and unemployment (e) economic growth and interest rates
Which of the following will NOT affect the natural rate of unemployment?
A) minimum wage legislation B) restrictive monetary policy C) employer discrimination D) geographic immobility