If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
A. elastic.
B. inelastic.
C. unit elastic.
D. perfectly inelastic.
Answer: A
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"I'd rather have $100 now than wait for $100 six months from now." This person
A) displays a negative rate of time preference. B) displays a positive rate of time preference. C) displays a zero rate of time preference. D) displays irrational behavior because the money will be more valuable later.
Refer to Figure 2-8. What is the opportunity cost of 100 dozen roses?
A) 0.8 dozen orchids B) 5 dozen orchids C) 40 dozen orchids D) 80 dozen orchids
Which of the following is true of America's millionaires?
a. Most millionaires inherited at least half of their wealth. b. Millionaires are far more likely than others to be self-employed entrepreneurs. c. It is virtually impossible to achieve this status by saving and investing over a lengthy period of time. d. Only about 20 percent of the millionaires in the United States have college degrees.
The marginal product of labor
A. measures how output changes as the wage rate changes. B. is negative when adding another unit of labor decreases output. C. is less than the average product of labor when the average product of labor is decreasing. D. both a and b E. both b and c