Paying efficiency wages are a way for a company to cut costs and become more efficient, and are therefore lower than market wages

Insurance companies typically charge women lower prices than men for automobile insurance. Is this an example of price discrimination?

A) Yes, because insurance companies can prevent arbitrage; that is, women cannot transfer their insurance coverage to men. B) No, because there are too many insurance companies for any one company to have market power. A firm must possess market power in order to practice price discrimination. C) No, because, on average, women have better driving records than men and the costs of insuring men are greater than the costs of insuring women. D) Yes, because the costs of selling insurance to men and women are the same.

In which of the following cases would there be an effect on the value of the U.S. consumer price index, but not on the value of the U.S. GDP deflator?

a. All of the truck tires that are produced by a certain company in South Korea are sold to the U.S. military, and the price of these tires decreases. b. All of the truck tires that are produced by a certain company in California are sold to the U.S. military, and the price of these tires decreases. c. Most of the bananas that are produced by a certain company in Honduras end up in U.S. grocery stores, and the price of these bananas increases. d. Most of the earth-moving machines that are produced by a certain company in Illinois are exported to other countries, and the price of these machines increases.