For a theme park a two-tier tariff can include a positive admission price and a zero per-ride fee

What will be an ideal response?


True. Both fees do not have to be positive. The firm will choose the combination of fee and per-ride price that maximizes profits.

Economics

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If the monetary policy curve is correct, then policy makers care only about inflation and not at all about aggregate output and unemployment. Comment

What will be an ideal response?

Economics

Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?

a. 0.45 b. 0.55 c. 1.81 d. 2.36

Economics

Which of the following is true?

a. Keynesians advocate increasing the money supply during economic recessions but decreasing the money supply during economic expansions. b. Monetarists advocate increasing the money supply by a constant rate year after year. c. Keynesians argue that the crowding-out effect is rather insignificant. d. Monetarists argue that the crowding-out effect is rather large. e. All of these.

Economics

If there is an increase in the price of oil, then

a. unemployment rises. If the central bank tries to counter this increase, inflation rises. b. unemployment rises. If the central bank tries to counter this increase, inflation falls. c. unemployment falls. If the central bank tries to counter this decrease, inflation falls. d. unemployment falls. If the central bank tries to counter this decrease, inflation rises.

Economics