Pricing with Market Power
Capturing Consumer Surplus
Price Discrimination: main
Price discrimination: other
Appendix: The Vertically
The monopolist dream:
Grabbing the Consumer
Lets Get Started
Universal economic problem
Economic questions and ways
of answering them
What is Economics?
Definition of Economics
Study of how people
allocate scarce resources
Has a price
things that s
(1)Define the term gross domestic product. Explain which transactions in the economy are
included in GDP.
GDP stands for gross domestic product and represents the total production of a nation within its
domestic borders. The formula of GDP that gross dome
DEPARTAMENTO DE ECONOMA
Practical Class. Topic 4: Expectations, Output, and Policy
UNIVERSIDAD DE ALCAL, PATRIMONIO DE LA HUMANIDAD
I. Label each of the following statements as true, false, or uncertain. Explain briefly:
a) Changes in th
PRACTICAL CLASS. TOPIC 1.
1) First, explain what the nominal interest rate represents. Second, explain what the real
interest rate represents.
2) Explain whether it is possible for the nominal interest rate to increase while the real
PRACTICAL CLASS. TOPIC 2.
1. Determine the yield to maturity of each of the following bonds:
a. A discount bond with a face value of 1000 , a maturity of 3 years,
and a Price of 800 euros.
b. A discount bond with a face value of 1000 , a
For this question, assume that there is perfect arbitrage in the stock market. Given this
assumption, economists believe that:
movements in stock prices are largely unpredictable.
Which of the following statements about indexed bonds is correct?
all of th
The Prisoners Dilemma
Implications of the Prisoners
Dilemma for Oligopolistic
Smith advocated the invisible hand as the force that
guides the market economy The invisible hand is
made up of two factors: greed and competition
Government does not need to control economy
Businesses will produce what people want most