Which of the following would economic freedom lead to?
a. A higher standard of living
b. Better living conditions
c. Longer life expectancy
d. Better education
e. All of these
QUESTION 2If a firm is able to collect the entire producer surplus, it is said to have practiced perfect price discrimination.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Economic freedom:
a. is the right to own property.
b. means not having to pay taxes.
c. is absent in rich countries.
d. affects only poor people.
e. is the ability to engage in voluntary trade.
QUESTION 4A price discriminating monopolist charges a very high price to the consumers with high price elasticity of demand.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5A piece of land is divided between John and Mary. However, only John gets the title to his share of land. Which of the following is true?
a. Both Mary and John will not take care of their lands.
b. Mary will have a higher per capita output from her piece of land.
c. John will not be able to rent out a portion of his land.
d. Mary will have a greater incentive than John to invest in her piece of land.
e. John will be able to use his land as collateral for a loan from a bank.
QUESTION 6Grocery coupons and mail-in rebates are forms of price discrimination.
a. True
b. False
Indicate whether the statement is true or false
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