If the college athletic department raises the price of football tickets from $6 to $8 and sells more tickets at $8 than it had sold the year before at $6, we could reasonably conclude the demand for football tickets
A) was completely inelastic.
B) had increased.
C) was elastic.
D) was inelastic.
E) was unit elastic.
B
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Suppose that real GDP starts at 100 and grows at a rate of 10 percent per year for two years. In the third year real GDP would be
A) 110. B) 110.1. C) 120. D) 121.
To provide quantitative answers to policy questions
A) it is typically sufficient to use common sense. B) you should interview the policy makers involved. C) you should examine empirical evidence. D) is typically impossible since policy questions are not quantifiable.
Which of the following is not an aspect of Keynesian economics?
A. Wages and prices tend to be inflexible downward. B. Supply does not necessarily generate its own demand. C. Saving depends directly upon the level of income. D. Unemployment is a temporary phenomenon.
Suppose the natural rate of unemployment is 5 percent. If the actual unemployment rate is 4 percent, then the cyclical unemployment rate is
A. 1 percent. B. -1 percent. C. 9 percent. D. 0 percent as cyclical unemployment cannot be less than zero.