If income doubles and the quantity demanded of good X more than doubles, then good X can be described as a
a. substitute good.
b. complement good.
c. necessity.
d. luxury.
d
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A public university knows that demand from potential students is elastic. If the university wants to increase tuition revenue, it should
a. raise its tuition rate b. hold its tuition rate constant and increase faculty salaries c. increase its financial aid d. lower its tuition rate e. increase its enrollment
After the U.S. government deregulated the trucking industry:
A. profits rose. B. freight prices rose. C. freight prices fell. D. the number of trucking companies decreased.
Common property ownership without granting property rights to individuals will likely leads to
A. production at a rate at which price is less than social cost. B. more social justice. C. an efficient allocation of resources. D. an increase of externalities.
If a consumer receives 20 units of utility from consuming two candy bars, and 25 units of utility from consuming three candy bars, the marginal utility of the third candy bar is
A) 25 utils. B) 20 utils. C) 5 utils. D) unknown as more information is needed to determine the answer.