Assuming that bus travel is an inferior good, a decrease in consumer income, other things being equal, will cause:
a. a downward movement along the demand curve for bus travel.
b. no change in the demand curve for bus travel.
c. an upward movement along the demand curve for air travel.
d. a rightward shift in the demand curve for bus travel.
d
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What was the decline in the value of mutual funds held by households during the depths of the financial crisis, between the third quarter of 2008 and the first quarter of 2009
A) $2 million B) $2 billion C) $200 billion D) $2 trillion
If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss due to both the monopoly and the tax is
A) $529. B) $1332. C) $1764. D) $441.
One reason that firms will experience decreasing returns to scale is:
A. the law of diminishing marginal returns. B. the specialization of inputs as scale increases. C. there is some fixed input that isn't being taken into consideration. D. larger firms may be easier to manage effectively.
Some of the crowding out of private expenditures may come in the form of
A) an increase in consumption. B) an increase in net exports. C) a decrease in taxes. D) a decrease in net exports.