Which One of the Following Cases Is NOT an Example

question 89

Multiple Choice

Which one of the following cases is NOT an example of price discrimination?

• A)Airlines charge different fares for business people than tourist travelers.
• B)Young males are charged higher premiums for car insurance than older males or women.
• C)A local phone company charges different telephone rates to residential and business users.
• D)Electric companies charge different rates to commercial and residential users for electricity.
• E)Theatres charge different rates for different age groups.

Identify historical trends of U.S. economic indicators and their implications.

Understand the impact of interest rate changes on international asset transactions.

Explain the dynamics of surplus and deficits in the foreign exchange market and their effects on net exports.

Describe the connection between market for loanable funds, net capital outflow, and the foreign-currency exchange market.

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Definitions:

Standard Deviations

A statistical measure indicating the amount of variation or dispersion from the average or expected value, widely used in finance to assess investment risk.

Risk Premium

The extra return expected by investors for holding a risky asset over a risk-free asset, compensating them for the risk of loss.

Treasury Bill

Short-term government securities with maturity periods typically less than a year, considered to be risk-free investments.

Holding-period Return

The total return received from holding an asset or portfolio over a specific period, including dividends or interest and any capital gain or loss.