If the demand for air travel were to change so that business travelers and vacationers have the same price elasticity of demand for air travel,
A) airlines would charge the same price to each type of flyer.
B) airlines would still charge business flyers a higher fare since the traveler's employer pays anyway.
C) airlines would be driven out of business.
D) airlines would counter by charging vacationers a higher fare.
A
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When inventories accumulate, unemployment rises.
Answer the following statement true (T) or false (F)
There are two basic ways a nation can increase long-run real GDP
a. Create more money and increase government spending. b. Current account surpluses and education. c. Provide more and/or better inputs to the production process and improve the efficiency of the production process. d. Reduce nominal interest rates and increase consumption and investment. e. All of the above.
Which of the following events must result in a higher price in the market for cigars?
a. Demand for cigars increases, and supply of cigars decreases. b. Demand for cigars and supply of cigars both decrease. c. Demand for cigars decreases, and supply of cigars increases. d. Demand for cigars and supply of cigars both increase
In macroeconomics, which of the following topics would most likely be studied?
A. The growth rate of the oil industry B. Bob's budget C. Unemployment in Mexico. D. Nike's costs of production