What is price discrimination? Give examples of price discrimination
What will be an ideal response?
Price discrimination is the practice of selling different units of a good or service for different prices. For example, airlines' customers pay different prices for the same trip, pizzerias charge a lower price for the second pizza bought, or Microsoft charges a lower than regular price when it sells its Office software to students.
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Markets can fail to achieve efficiency when
a. there are prices consumers do not think are fair. b. there are wages workers do not think are fair. c. trade puts people out of work. d. there are markets with imperfect competition.
Economists calculate GDP two different ways. They add up the total value of all final goods and services produced in the economy in a given year and add up the total value of the resources used in making these goods and services. Identify these two approaches. a. The former calculation is called the circular flow approach to GDP; the latter is called the income approach to GDP
b. The former calculation is called the expenditure approach to GDP; the latter is called the income approach to GDP. c. The former calculation is called the income approach to GDP; the latter is called the expenditure approach to GDP. d. The former calculation is called the real GDP approach; the latter is called the nominal GDP approach. e. The former calculation is called the nominal GDP approach; the latter is called the real GDP approach.