Based on the graphs showing price discrimination in movie ticket prices, an elastic demand curve prompts theatres to ______.
a. charge higher prices
b. charge lower prices
c. go bankrupt
d. add more seats
b. charge lower prices
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Classical economists thought that
A. flexible wages and prices were the principal causes of recessions. B. the Great Depression confirmed their view of the business cycle. C. government policies and spending were needed to keep the economy at full employment. D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
When all markets in the economy are simultaneously in equilibrium, we say
A) markets are complete. B) markets are perfect. C) there is disequilibrium. D) there is general equilibrium.
The rule for the optimal use of any input says that
A. when MRP is less than price, it pays to expand resource use. B. when MRP is greater than price, it pays to expand resource use. C. when MRP equals price, resource use should be cut back. D. resources should be used only if MRP exceeds price.
"Those most able should pay the highest taxes" reflects the
a. ability-to-pay principle. b. concept of horizontal equity. c. idea of fiscal federalism. d. benefits principle.