Which of the following is NOT a precondition for price discrimination?
A) The product cannot be resold to another customer.
B) The price elasticities of demand are different for each group of consumers.
C) The product is a durable good.
D) The seller must have some market power.
Answer: C
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Suppose a change in technology increases the marginal product of labor. The result is a(n):
a. downward movement along the demand for labor curve. b. rightward shift in the demand for labor curve. c. leftward shift in the demand for labor curve. d. upward movement along the demand for labor curve.
Assume a country experiences heavy capital outflows. What is the first round effect on the real risk-free interest rate?
a. The change in the real risk-free interest rate is ambiguous. b. The real risk-free interest rate rises. c. The real risk-free interest rate falls. d. The real risk-free interest rate is unaffected.