Demand for a good which comprises a relatively small share of the consumer's budget tends to be
A. perfectly inelastic.
B. perfectly elastic.
C. elastic.
D. inelastic.
Answer: D
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If average movie attendance is 250 million when prices are $9 a ticket and 200 million when prices are $11 a ticket, the elasticity of demand for movie tickets is about:
A. 1.1. B. 0.0. C. 1.8. D. 0.9.
The above figure presents the view of the economy according to
A. Ricardian economics. B. Keynesian economics. C. microanalysis. D. classical economics.
After the North American Free Trade Agreement (NAFTA) was signed, trade restrictions among Canada, the United States, and Mexico were eased and cross-border trade increased. What predictions would the Heckscher-Ohlin model make concerning output changes in labor-intensive industries such as textiles in both Mexico and the United States and in capital-intensive industries such as steel in both Mexico and the United States, as a result of NAFTA?
What will be an ideal response?
Which of the following statements is CORRECT?
A) Because information is different from typical goods and services, it cannot be provided in a market. B) The marginal benefit from more information does not decrease. C) Too little information is provided if the market for information is a monopoly. D) Acquiring more information can never be inefficient.