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.

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Definitions:

Unrealized Gain/Loss

A profit or loss that results from holding an investment that has not yet been sold, and thus, the gain or loss is not reflected in the financial statements.

Government Bonds

Debt securities issued by a government to support government spending, considered low-risk investments since they are backed by the taxing power of the issuing government.

Corporate Bonds

Debt securities issued by corporations to finance their operations, which pay interest to investors until maturity.

Available-For-Sale

A classification of securities which are not actively traded by the company, with changes in value reported in other comprehensive income.