Related to the Economics in Practice on page 360: Suppose you see the following advertisement for a vacation rental. "Beautiful condo on the Island of Maui (Hawaii). Sleeps 5. Great landscaped grounds, pool, and BBQ area. Lanai overlooks pool. $1,500 per week." It is likely true that the condo
A. is not on the island of Maui.
B. has an actual rental rate of $1600 per week.
C. doesn't have a view of the pool.
D. has no view other than the pool (i.e. no ocean, mountain, or city view).
Answer: D
You might also like to view...
If the dollar interest rate is 10 percent and the euro interest rate is 6 percent, then an investor should
A) invest only in dollars. B) invest only in euros. C) be indifferent between dollars and euros. D) invest only in dollars if the exchange rate is expected to remain constant. E) invest only in euros if the exchange rate is expected to remain constant.
Refer to Scenario 2. What are the units of measurement for the standard error of the estimate?
What will be an ideal response?
If demand is unit elastic, an increase in price will lead to an increase in total revenue
Indicate whether the statement is true or false
Figure 5-2
illustrates the market for a product that generates an external cost. S1 is the private market supply curve, while S2 is the supply curve including the external cost. Which of the following is true?
a.
Relative to economic efficiency, output of the good will be too large and the price too low.
b.
Relative to economic efficiency, output of the good will be too large and the price too high.
c.
Relative to economic efficiency, output of the good will be too small and the price too low.
d.
Relative to economic efficiency, output of the good will be too small and the price too high.