"economics"exercise:Business Cycles
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Questions 1:
First-degree price discrimination is best described as pricing that allows producers to increase their economic profit while consumer surplus:
A 、is eliminated.
B 、increases.
C 、decreases.
Questions 2:
The unemployment rate is best described as the ratio of unemployed to:
A、 labor force.
B 、labor force minus frictionally unemployed.
C、 total population of people who are of working age.
A is correct. In first-degree price discrimination, the entire consumer surplus is captured by the producer; the consumer surplus falls to zero.
B is incorrect. In first degree price discrimination, the entire consumer surplus is captured by the producer; the consumer surplus falls to zero.
C is incorrect. In first degree price discrimination, the entire consumer surplus is captured by the producer; the consumer surplus falls to zero.
A is correct. The unemployment rate is the ratio of unemployed to labor force.
B is incorrect because unemployment rate includes all the labor force.
C is incorrect because unemployment rate is based on the labor force and the working age. The labor force is defined as the number of people who either have a job or are actively looking for a job
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