The economist Hernando de Soto extensively studied:
a. the problem of scarcity.
b. opportunity costs.
c. insecure property rights.
d. economic freedom in rich countries.
e. the sources of comparative advantage in trade.
QUESTION 2In order to practice price discrimination successfully, a monopolist must ensure that there is no resale of the product.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3One of the reasons communism failed was because:
a. governments ran out of money.
b. workers received the same pay whether or not they worked hard.
c. there was no unemployment.
d. Mao Zedong passed away.
e. technological improvements were impossible in a communist economy.
QUESTION 4The only types of firms that cannot theoretically practice price discrimination are perfectly competitive firms.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5In 1981, in San Francisco Solano, Argentina, about 1,800 families took over a piece of wasteland. The government was able to deed 60 percent of this land to some families while the remaining part could not be deeded. The resulting houses varied greatly, based on whether the residents received title. Those who received title also behaved differently, having fewer children, and the children experienced more education and better health. This is an example of the results from:
a. scarcity.
b. economic growth.
c. economic freedom.
d. private property rights.
e. improved quality of life.
QUESTION 6Airlines can increase profits by charging higher fares to business customers because those customers have a more elastic demand for airline travel.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Villagers in Xiaogang, China, produced more rice than those in surrounding villages because:
a. they had better farmland.
b. they were given better seeds.
c. they were able to keep the output they produced individually.
d. they made each family responsible for a certain, higher quota of rice production.
e. they had common ownership over the rice produced.
QUESTION 8By discriminating between the consumers, the monopolist actually takes away a portion of the consumer surplus.
a. True
b. False
Indicate whether the statement is true or false
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