Gigantic State University raises tuition for the purpose of increasing its revenue so that more faculty can be hired. GSU is assuming that the demand for education at GSU is:
A. decreasing.
B. relatively elastic.
C. perfectly elastic.
D. relatively inelastic.
Answer: D
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An income tax _____
a. increases the return to bearing risk, if the company is a monopolist b. has no impact on the return to bearing risk c. increases the return to bearing risk d. reduces the return to bearing risk
A higher interest rate makes _____ less attractive. Therefore the quantity of loanable funds demanded decreases
Fill in the blank(s) with correct word
Which of the following statements about isoquant maps is true?
A. They always have positive slope. B. They cannot illustrate economies of scale unless some numerical values are attached. C. They always have negative slope. D. They can illustrate diminishing returns to production only when they have numerical values attached.
Opening this economy to trade would benefit ________ and harm ________.
A. domestic TV producers; domestic TV consumers B. domestic TV consumers; domestic TV producers C. everyone; no one D. no one; everyone