Figure 10.6 shows prices, demands, and cost data for the only restaurant in a small town. What is its profit from non-senior customers under the senior discount policy of a $7 senior price and a $10 non-senior price?
A. $1,200
B. $1,500
C. $2,280
D. $2,560
Answer: D
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A) reserves of U.S. dollars held by the World Bank B) U.S. government's holdings of foreign currency C) reserves of U.S. dollars held by foreign banks D) holdings of foreign currency by the public and the banks
The Clinton administration has recommended an increase in the tax on yachts to help pay for government programs. Which of the following is true?
A) The burden of this tax will fall entirely on yacht consumers. B) The burden of this tax will fall entirely on yacht manufacturers. C) The sales of yachts will decrease. D) The profit of yacht manufacturers will increase. E) Employment of workers in the yacht industry will increase.
The face value of money or income is called its ________ value.
A. real B. marginal C. nominal D. external
For a necessity good, the price elasticity of demand is: a. close to zero
b. close to 1. c. greater than 1. d. close to infinity.