A movie theater raises ticket prices from $8 to $10 in order to raise revenues. The theater's management is assuming the absolute value of the price elasticity of demand for tickets is
A) less than 1.
B) greater than 1.
C) equal to 1.
D) infinity.
Answer: A
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All else held constant, the international value of foreign currencies will increase against the U.S. dollar if ________.
A. U.S. citizens reduce spending on imports B. there are withdrawals of funds by foreigners from U.S. money markets C. there is an increase in the number of foreign tourists in the United States D. the U.S. Federal Reserve raises real interest rates
When the money market is drawn with the value of money on the vertical axis,
a. money demand slopes upward and money supply is horizontal. b. money demand slopes downward and money supply is horizontal. c. money demand slopes upward and money supply is vertical. d. money demand slopes downward and money supply is vertical.
Operation on the basis of comparative advantages implies which of the following?
(a) Countries allocate their resources across all sectors regardless of opportunity costs. (b) Countries will specialize even if they can produce everything. (c) Countries not efficient in any production should not trade. (d) none of the above.
Price elasticity of demand is a measure of the relative responsiveness of the change in quantity demanded to a change in price
a. True b. False Indicate whether the statement is true or false