Author Question: If a monopoly engages in first-degree price discrimination: A) social surplus is maximized. B) ... (Read 123 times)

gbarreiro · **on:** Jun 29, 2018

If a monopoly engages in first-degree price discrimination:

A) social surplus is maximized.
B) consumer surplus is maximized.
C) producer surplus is minimized.
D) the deadweight loss is maximized.

Question 2

Does fiscal policy affect monetary policy?

A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income.
B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals.
C) Yes, because government deficits or surpluses affect the total demand for credit.
D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.