If the price elasticity of demand for football tickets is estimated to be 4.5, then a 10 percent increase in football ticket prices would be expected to cause a:
a. 4.5 percent decrease in quantity demanded.
b. 4.5 percent increase in quantity demanded.
c. 45 percent decrease in quantity demanded.
d. 45 percent increase in quantity demanded.
e. 450 percent increase in quantity demanded
c
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Gross Domestic Product is defined to be the market value of all the final goods and services produced during a given time period
A) within a country. B) within and outside a country by that country's citizens. C) by citizens of the country, regardless of their place of residence. D) by only legal residents of the country. E) within a county minus the market value of all the final goods and services produced by that country's citizens outside the country.
A regressive tax is a tax for which people with lower incomes
A) pay the same percentage of their incomes in tax as do people with higher incomes. B) do not have to pay unless their incomes exceeds a certain amount. C) pay a lower percentage of their incomes in tax than do people with higher incomes. D) pay a higher percentage of their incomes in tax than do people with higher incomes.
Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?
a. Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line. b. Waiting in line imposes a cost on the consumer; paying higher prices does not. c. Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output. d. Waiting in line benefits consumers at the expense of producers.
If GDP increases, then real GDP
A. may have either increased or decreased. B. has increased. C. has decreased. D. is unchanged.