If a change in the U.S. price level caused U.S. imports to increase, it must be true that the price level:
A. increased.
B. decreased.
C. became negative.
D. became elastic.
Answer: A
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If the investment curve is relatively flat, the Keynesian conclusion is that the transmission mechanism has little effect on the economy
a. True b. False Indicate whether the statement is true or false
Suppose that a study of changes in admission prices reveals that when the price of admission to the museum increases by 10%, adults reduce their ticket purchases by 10%, senior citizens reduce their ticket purchases by 20%, college students reduce their ticket purchases by 25%, and children reduce their ticket purchases by 30%. If the cost of having a person visit the museum is the same regardless of whether the person is an adult, senior citizen, college student, or child, which of the following pricing schemes is the most likely to be used by the museum and why?
A. The museum will set one price of $12 for everyone because that is the most fair. B. $8 for children, $10 for college students, $12 for senior citizens, and $15 for adults because the museum can earn higher profits by charging the highest price to those with the least elastic demand and the lowest price to those with the most elastic demand. C. $8 for children, $10 for college students, $12 for senior citizens, and $15 for adults because the museum can earn higher profits by charging the lowest price to those with the least elastic demand and the highest price to those with the most elastic demand. D. $15 for children, $12 for college students, $10 for senior citizens, and $8 for adults because the adults are most likely to visit and the children are least likely to visit.
Recall the Application about the salaries paid in Major League Baseball to answer the following question(s). Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.Recall the Application. On average, apprentices in Major League Baseball tend to be paid a salary ________ their marginal revenue product.
A. significantly higher than B. significantly lower than C. close to D. unrelated to
The data for the U.S. show that investment and profits
A) have a strong negative relationship. B) are positively related during recessions, and negatively related during expansions. C) move independently. D) are positively related during expansions, and negatively related during recessions. E) none of the above