Suppose the price of local cable TV service increased from $16.20 to $19.80 and as a result the number of cable subscribers decreased from 224,000 to 176,000. Along this portion of the demand curve, price elasticity of demand is:
A. 0.8.
B. 1.2.
C. 1.6.
D. 8.0.
Answer: B
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An increase in government expenditure can ________ potential GDP and an increase in taxes can ________ potential GDP
A) increase; never change B) increase; increase C) decrease; decrease D) never change; never change E) increase; decrease
Suppose fishermen go fishing at a fishery that has no property rights (meaning any fishermen could fish as she liked). The marginal cost of a fishing boat is constant at $100, and the price for each pound of fish sells at $1. Further, assume the relation between the number of vessels and the total catch is given by the following table: Each boat that goes out get an equal share of all the fish caught and there are 8 boats possible. 
If the fishery was own collectively by all the fishermen, how many boats would be sent out fishing?
A. 8 B. 0 C. 7 D. 6
Among the following examples, the one that best illustrates a public good is:
A. The laptops used by students in a college or university B. The movies produced by Hollywood companies C. The bike paths around a city or town D. The airline tickets bought by vacationers
The idea that it takes 90 percent of your time to clean up the last 2 percent of your house illustrates that
A. the marginal benefit of cleaning up is constant. B. the marginal cost of cleaning up slopes downward. C. the marginal benefit of cleaning up slopes upward. D. the marginal cost of cleaning up slopes upward.