An 11-year-old child who gets into a sold-out show by buying a $1.00 ticket when the regular price is $5.50 adds $1.00 to the theater owner's
What will be an ideal response?
total revenue but it costs the owner $5.50 because of the sellout.
You might also like to view...
The decision about what goods and services will be produced in a market economy is made by
A) consumers and firms choosing which goods and services to buy or produce. B) consumers dictating to firms what they need most. C) workers deciding to produce only what the boss says must be produced. D) producers deciding what society wants most. E) lawmakers in the government voting on what will be produced.
A typical American worker covered by unemployment insurance receives 50 percent of his former wages for 52 weeks
a. True b. False Indicate whether the statement is true or false
Suppose foreigners find U.S. goods and services more desirable for some reason other than a change in the exchange rate. Which policies could be used to offset the resulting change in output?
a. an increase in the money supply and an increase in government purchases. b. an increase in the money supply and a decrease in government purchases. c. a decrease in the money supply and an increase in government purchases. d. a decrease in the money supply and a decrease in government purchases.
Which statement is false?
A. Since some people choose to hold some of their currency, the deposit multiplier is lower than one divided by the reserve ratio. B. In times of inflation banks are quite likely to carry excess reserves. C. If banks choose to hold excess reserves; the deposit multiplier will be lower than expected. D. If there is a large drain of dollars to foreigners because of a large trade imbalance, the deposit multiplier will be lower than expected.