When universities announce a large tuition increase and follow it with an announcement that more financial aid will be available, they are assuming that students who pay full tuition:
A. Have elastic demand and students who use financial aid have inelastic demand
B. Have inelastic demand and students who use financial aid have elastic demand
C. View a college education as an inferior good and students who use financial aid view it as a normal good
D. View a college education as a normal good and students who use financial aid view it as an inferior good
B. Have inelastic demand and students who use financial aid have elastic demand
You might also like to view...
Statistical evidence suggests that
A) free trade policies promote economic growth more effectively than do import substitution policies. B) import substituting policies tend to promote effective exploitation of scale economies. C) import substitution tends to lead to relatively low effective rates of protection. D) import substitution is to this day the preferred growth strategy promoted by the World Bank. E) import substitution proved to be the most effective aid for developing countries before 1970.
Rent is the payment received by resource owners for the use of their natural resources
a. True b. False
If a firm decides to hire a celebrity endorser, they compare the cost of hiring the celebrity endorser with:
A. profits from repeat customers. B. the cost of customer complaints. C. profits from initial purchases only. D. the number of celebrity endorser's instagram followers.
Which of the following statements about the International Monetary Fund (IMF) is TRUE?
A. The IMF was created to reduce tariff barriers between nations. B. The IMF obtains funds from quota subscriptions charged to member countries. C. The IMF was created to finance long-term economic development projects in poor countries. D. The IMF functions as a central bank that conducts monetary policy for the world economy.