If total revenue increases when price increases:
A. demand is inelastic.
B. demand is unit elastic.
C. demand is elastic.
D. Any of these could be true.
Answer: A
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Explain the Median Voter Theorem
What will be an ideal response?
A legal arrangement whereby a firm can hire only union labor is called
A) a union shop. B) a closed shop. C) a sweat shop. D) an open shop.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
Projection bias:
A. is the tendency to evaluate present consequences based upon tastes and needs of the future. B. is the tendency to evaluate future consequences based on tastes and needs at the moment of the decision making. C. is the tendency to project future states of mind to the present. D. can lead people to overestimate their adaptability.