If the university administration plans to cut tuition charges in the hope of attracting more students and thereby 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.
A
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The working-age population includes
A) people over the age of 16 who are in the Army. B) employed and unemployed people over the age of 16. C) those in jails and hospitals. D) youngsters between the ages of 14 and 16 if they are working at least part time. E) only employed people over the age of 16.
One of the major insights by economist John Maynard Keynes about production was that:
A. firms may not produce all they can at a given price, but what they can sell. B. firms generally produce as much as they can at a given price. C. government spending needs to be kept in check in order for the economy to operate efficiently. D. household spending patterns don’t really influence the health of the economy.
Social demand equals market demand minus externalities when there are external benefits.
Answer the following statement true (T) or false (F)
Economists:
A. always put the independent variable on the horizontal axis and the dependent variable on the vertical axis. B. always put the dependent variable on the horizontal axis and the independent variable on the vertical axis. C. are somewhat arbitrary in assigning independent and dependent variables to the horizontal and vertical axes. D. measure the slope of a line differently than do mathematicians.