Elizabeth Savoca estimated that for every 1 percent increase in tuition costs at a college, 2.4 percent fewer students applied to that college. This indicates that the elasticity of applying to college is:
A. unit elastic.
B. elastic.
C. perfectly inelastic.
D. inelastic.
Answer: B
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To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.
A. decreases; increases B. increases; decreases C. increases; does not affect D. does not affect; increases
Fitness is a magazine for women about health and exercise. Fitness offers year subscriptions for $12 on their website. Jess, Ania, Mandy, and Chloe exercise together and each enjoy reading Fitness
Jess is willing to pay $10, Ania is willing to pay $16, Mandy is willing to pay $24, and Chloe is willing to pay $12 for a subscription to the magazine. Who will subscribe to the magazine? A) Ania, Mandy, and Chloe B) Jess, Ania, Mandy, and Chloe C) Jess, Ania, and Chloe D) Mandy and Chloe
At the point where total utility is at its peak, marginal utility is:
a. zero. b. positive. c. negative. d. positive, but declining. e. positive, but increasing.
A disadvantage of the proprietorship form of business organization is
A. that the owner must fight a lot of red tape to form the firm. B. its limited liability. C. that it can issue only one class of stock. D. its limited access to capital.