If government spending and taxes increase by the same amount,
A) the IS curve does not shift
B) the IS curve shift leftward
C) the IS curve shifts rightward
D) the LM curve shifts downward
C
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Suppose the Chicago Bears football team raises ticket prices by 13 percent and as a result the quantity of tickets demanded decreases by 21 percent. This response means that the demand for Bears tickets is
A) inelastic. B) elastic. C) unit elastic. D) perfectly inelastic. E) perfectly elastic.
In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
Mary wants to open her own taco stand. Which of the following will probably happen?
a. She will start up her business in a year because she has to wait to get government approval. b. She will start up her business in a month because of low cost and ease of entry. c. She will take six months to start her business because of all the government certificates she has to get. d. She will take three months to start her business because she has to borrow to pay start-up fees.
Under a free agent structure, the wage paid to a professional athlete is likely to be close to his
A. deadweight loss. B. marginal revenue product. C. reservation wage. D. average compensation.