If the university administration plans to hike tuition charges in the hope of increasing tuition revenues, we know
A) they are assuming an elastic demand.
B) they are assuming an inelastic demand.
C) they cannot succeed because of the law of demand.
D) they must be running in the red.
E) they will only succeed if more students can be enrolled at no cost.
B
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How can you calculate the cost per mile of owning a car?
A) Divide total costs per year of owning the car by the number of miles driven in a year. B) Divide total costs per year of owning and operating the car by the number of miles driven in a year. C) Divide total costs per year of operating the car by the number of miles driven in a year and add the result to the cost of owning the car. D) You cannot do so in any defensible way because cars are owned per unit of time period, not per unit of distance.
Whom among the following was a classical economist?
A) Adam Smith B) A. C. Pigou C) David Ricardo D) all of the above
The endowment effect is the tendency:
A. to place a higher value on something a person already owns simply because they own it. B. to have a harder time parting with wealth people have held the longer the amount of time they hold it. C. for a person to believe they hold a particular skill because someone told them they do. D. for people to want to bestow their own beliefs on others when making decisions.
If there is an unrest in Europe that threatens the economic stability of Turkey, the
A) demand for the Turkish currency will fall. B) demand for the Turkish currency will rise. C) supply of the Turkish currency will fall. D) supply of the Turkish currency will rise.