Over the price range from $180 to $120 in Figure 20.1, ceteris paribus,
A. Demand is increasing.
B. Total revenue is maximized.
C. Utility is maximized.
D. Demand is elastic.
Answer: D
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A person 16 years or older who does not work, but is actively looking for work, is officially classified as:
A. unemployed. B. employed. C. chronically unemployed. D. out of the labor force.
Fiat money is money:
a. accepted by law regardless of its intrinsic value. b. that is not included as part of the M1 money supply. c. that is backed by gold or silver held on reserve by the government. d. such as coins that are made from metal.
If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged, we expect the number of lattes purchased at Starbucks to:
A. decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes. B. decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee. C. increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes. D. decrease as some people have less money to spend on caffeinated beverages.
There are 10,000 families in a neighborhood that are affected by noise pollution from a local factory. The noise could be reduced if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. Since there are so many families, they fail to come to a resolution to which they will all agree. This outcome is an example of the
A. collective action problem (that arises when there are too many parties involved). B. drop-in-the-bucket problem. C. Coase theorem. D. free-rider problem.