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SECOND-DEGREE PRICE DISCRIMINATION: A form of price discrimination in which a seller charges the different prices for different quantities of a good. This also goes by the name block pricing. This is possible because the different quantities are purchased by different types of buyers with different demand elasticities. This is one of three price discrimination degrees. The others are first-degree price discrimination and third-degree price discrimination.

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Lesson 1: Economic Basics | Unit 4: Goals Page: 13 of 18

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  • The three macroeconomic goals of full employment, stability, and growth.
  • The two microeconomic goals of efficiency and equity.
  • The tradeoffs that exist between the five economic goals and why the pursuit of one goal prevents pursuit of another.

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INVESTMENT, PRODUCTION POSSIBILITIES

Investment typically refers to the purchase of productive capital by business in anticipation of increasing production and (presumably) generating more profit. More generally, investment can be considered as sacrificing the current satisfaction of wants and needs (consumption goods) to expand productive capability (capital goods). Production possibilities analysis can be used to illustrate the tradeoff between consumption and capital as a movement along a production possibilities curve.

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On a typical day, the United States Mint produces over $1 million worth of dimes.
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