A movie theatre raises its admission prices by 10%, which results in a 10% reduction in the quantity of tickets demanded. The demand curve facing this firm is:
a. elastic
b. inelastic.
c. unit elastic.
d. unit inelastic.
c
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Social Security is an example of
A) a progressive income tax. B) a subsidized service. C) an income maintenance program. D) an unemployment benefit.
If the marginal benefit of reducing emissions of some air pollutant is greater than the marginal cost
A) the marginal benefit will rise and the marginal cost will fall as further reductions are made. B) private businesses, rather the consumers, should be made to pay for the cost of further reductions. C) further reductions will make society better off. D) economic efficiency will be achieved when emissions are reduced to zero.
With regard to agricultural productivity (grain crops) in the post-Civil War period (1870–1910),
(a) output per acre went up significantly. (b) output per man-hour went up significantly. (c) output per unit of energy input went up significantly. (d) all of the above occurred.
A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town
The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals A) is unimportant since the firm is reducing the unemployment in the region. B) creates a negative externality. C) is the production of a public good. D) creates a positive externality.