(Figure: Demand for Online Movie Rentals) Use Figure: Demand for Online Movie Rentals. A decrease in the price of Google Chromecast adapters (a complement good) would result in a change illustrated by the move from:
a.) l to m in panel D
b.) f to g in panel A
c.) h to i in panel B
d.) j to k in panel C
Answer: c) h to i in panel B
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The unemployment rate for people with less education typically is ________________ than for those with higher levels of education.
a. lower b. longer c. higher d. shorter
Researchers find that the income elasticity of poultry demand in Indonesia is 1.2. This implies that if income is expected to grow at 5%, then projected demand for poultry will:
a. Increase by 5% b. Increase by 6% c. Increase by 6.2% d. Increase by 4.2%
Because monopolists are protected by high barriers to entry, they:
A. may be able to earn long-run economic profits. B. will not minimize the per-unit cost of producing their output. C. will price their product at the highest possible price. D. seek economic profit; however, they are not able to earn it in the long run.
An externality associated with advertising of products legal only for a specified age group is that it
A. might be deemed boring by members of that specified age group. B. might appeal to persons outside of that specified age group. C. increases the time members of that specified age group spend watching TV and reading magazines. D. all of the options are correct.