A community college charges lower tuition fees to town residents than to nonresidents. This pricing strategy increases the profits of the community college. Using this information, we can conclude that nonresidents must have a _____ demand for attending the community college than residents.
a. less price-elastic
b. greater
c. more price-elastic
d. lower
a. less price-elastic
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When actual output equals potential output there is ________ output gap and the rate of inflation will tend to ________.
A. an expansionary; increase B. no; remain the same C. an expansionary; decrease D. a recessionary; increase
A price taker is a firm that
A) seeks to maximize revenue rather than profit. B) cannot influence the market price. C) searches for the best price and then takes the highest profits possible. D) buys inputs for firms.
Which statement about the Life Cycle Hypothesis is NOT true?
A. It describes the choices of consumers who live for a long time. B. It separates consumers' earnings into two stages. C. It assumes that people prefer instability. D. It assumes that people prefer a higher standard of living to a lower standard of living.
The hallmark of Clintonomics was first to reduce the budget deficit
a. True b. False Indicate whether the statement is true or false