As cities prospered and per-capita incomes increased, the demand for bus travel diminished. This suggests that:
A. cities could raise revenue by increasing bus fares.
B. the demand for bus travel is price elastic.
C. bus travel and automobile travel are complements.
D. bus travel is an inferior good.
Answer: D
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When should a firm increase its production?
a. When it is earning a positive profit. b. When its revenues are too low to cover the firm's fixed costs. c. When there is a fall in the price of its product. d. When its marginal revenue exceeds its marginal cost.
Government failure, when government actions lead to inefficiency, can result in
A) overprovision. B) underprovision. C) both A and B. D) neither A nor B.
What does the Law of Supply state? What is the key feature of a typical supply curve?
What will be an ideal response?
The immigrants most likely to go directly to the lands in the West, rather than be absorbed into the eastern city populations, were from
a. England and Scotland. b. Germany c. Ireland. d. France.