It is likely that ________ has an income elasticity less than 1, and ________ have an income elasticity more than 1.
A. vacations; cell phones
B. coffee; sailboats
C. sailboats; cars
D. filet mignon; chicken
Answer: B
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A sale of foreign assets by a central bank has the same effect on the monetary base as
A) a decrease in the discount rate. B) a decrease in the required reserve ratio. C) an open market sale of government bonds. D) an open market purchase of government bonds.
Lionfish is an aquatic invasive species in the southeastern U.S. and the Caribbean. Current removal policies focus on harvesting the lionfish for human consumption. However, a fishing license is required to fish in most southern states
Assume the supply of fishing licenses is Qs = 50 + 0.05L + 40P, where L = lionfish population and P = price of a fishing license, and the demand for fishing licenses is Qd = 1400 – 60P. What is the equilibrium price and quantity of fishing licenses when L = 1,000? A) P = $8.5, Q = 890 B) P = $13, Q = 620 C) P = $13.5, Q = 590 D) P = $13.5, Q = 591
An electric utility is going to use a block-pricing schedule. They plan to charge P1 for the first Q1 units and P2 for the subsequent units. The units sold at P2 are the total units sold, Q2, minus the total units sold at P1
The inverse demand curve is P = $100 - Q, and the marginal and average cost is $40. Use calculus to solve for P1, P2, Q1, Q2.
When oligopolistic companies engage in collusion, the companies are involved in a
A) noncooperative game. B) negative-sum game. C) competitive game. D) cooperative game.