The demand for a subway ride is probably ________ than is the demand for a car because ________.
A. less price elastic; people will take a longer time to adjust to the change in the price of a subway ride
B. more price elastic; a subway ride requires a smaller portion of one's income
C. more price elastic; people will take a longer time to adjust to the change in the price of a subway ride.
D. less price elastic; a subway ride requires a smaller portion of one's income
Answer: D
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The opportunity cost of taking an on-line history class is
A) the cost of tuition and fees only. B) zero because there is no classroom time involved if you are enrolled in the course. C) the value of the time spent on line. D) the knowledge and enjoyment you receive from taking the class. E) equal to the highest value of an alternative use of the time and money spent on the class.
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. plan to exit the industry in the long run if price falls below $15.
B. continue to operate in the short run if price is below $11.
C. make positive profits any time the price is greater than $11.
D. will earn maximum profits at a quantity of 35.
The euro began trading in January 1999
a. True b. False Indicate whether the statement is true or false
Assume that your roommate is very messy. Suppose she gets a $25 benefit from being messy but imposes a $50 cost on you. The Coase theorem would suggest that an efficient solution would be for you to
a. pay your roommate at least $25 but no more than $50 to clean up after herself. b. pay your roommate at least $51 to clean up after herself. c. charge your roommate at least $25 to have you clean up after her. d. charge your roommate at least $50 but no more than $100 to keep you from complaining about the mess.