The price of a bus ride decreases, and the total revenue of the bus company decreases. The demand for bus rides is ________
A) perfectly elastic
B) inelastic
C) unit elastic
D) elastic but not necessarily perfectly elastic
B
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You are given the following budget data for a country that has both a central government and local governments
(a) How much is the deficit for the central government, the local government, and the total of the central and local governments? (b) How much is the primary deficit for the central government, the local government, and the total of the central and local governments?
Since the early 1980s, the real exchange rate between U.S. goods and Japanese goods has climbed, relative to the nominal exchange rate (yen/U.S. dollar). What does this imply about economic conditions in the two countries?
What will be an ideal response?
If you buy a book of U.S. postage stamps to use to mail love letters to your sweetheart, the purchase is considered part of
a. C b. I c. G d. X e. M
When competitive forces in an industry are weak,
a. the absence of competition generally leads to overproduction. b. prices may exceed the amount consumers are willing to pay. c. the operational efficiency of private firms will be enhanced. d. higher prices and less than optimal production may result.