A marketing survey shows that gate receipts would increase if the price of tickets to a summer rock concert increased, even though the number of tickets sold would fall. What does this imply about the price elasticity of demand for concert tickets?
A. Demand is inelastic
B. Demand is elastic
C. Demand is unit elastic
D. Demand is perfectly inelastic
E. Demand is perfectly elastic
A. Demand is inelastic
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If nominal GDP in 2012 was less than real GDP in 2012, we know for certain that
A) the price level in 2012 was greater than the price level in the base year. B) real GDP in 2012 was greater than real GDP in the base year. C) the price level in 2012 was less than the price level in the base year. D) real GDP in 2012 was less than real GDP in the base year.
As the share of healthcare expenditures paid for by third parties has grown, both healthcare prices and total expenditures have increased rapidly. Is this surprising?
a. Yes; third-party payments provide healthcare consumers with a strong incentive to economize, and therefore, the growth of expenditures is particularly surprising. b. No; third-party payments weaken the incentive of healthcare consumers to economize, and therefore, the rapid growth of expenditures is an expected result. c. Yes; the price increases are surprising because healthcare suppliers have a strong incentive to provide the services at a low price when they are paid for by a third party. d. No; the growth of third-party payments will reduce the demand for healthcare, which will lead to both higher prices and expenditure levels.
If Real GDP is $8,000, the money supply is $3,100, and velocity is 4, then the price level is
A) 1.92. B) 4.69. C) 1.55. D) 3.33.
In an economy experiencing a persistently falling price level:
a)potential GDP will necessarily exceed actual GDP. b) changes in nominal GDP may either overstate or understate changes in real GDP. c) changes in nominal GDP understate changes in real GDP. d)changes in nominal GDP overstate changes in real GDP.