Recall the Application regarding the elasticity of demand for public transit varying over time to answer the following question(s).According to the Application, the demand for public transit in the long run is ________, so a 10 percent increase in the transit fare will decrease ridership by ________.
A. 0.80; 8 percent
B. 0.60; 6 percent
C. 0.50; 5 percent
D. 0.7; 7 percent
Answer: A
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________ occurs when an individual has no incentive in paying for a good because failure to pay does not prevent consumption
A) A free-rider problem B) The paradox of thrift C) A tragedy of the commons D) The paradox of plenty
The Ricardian model of comparative advantage lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade is mutually beneficial to the countries that engage in it.
What is the short-run Phillips curve and what observations does it make?
Market supply is obtained by
A) summing the amount demanded by individual consumers at various prices. B) summing the amount supplied by individual producers at various prices. C) the law of supply. D) observing how the supply curve shifts.