Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the college. It can be concluded that the president thinks that demand to attend this college is:
a. unitary elastic.
b. perfectly elastic.
c. inelastic, but not perfectly inelastic.
d. elastic.
c
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
In the research that used the audit method to send out 5,000 realistic-looking resumes for advertised jobs in Boston and Chicago, the results show that improving your resume by acquiring new skills and job experience appears to
A) matter for whites and for blacks. B) not matter for whites or blacks. C) matter for whites but not for blacks. D) matter for blacks but not for whites.
Refer to Figure 2-13. Which country has a comparative advantage in the production of pineapples?
A) Costa Rica B) They have equal productive abilities. C) Guatemala D) neither country
For the CPI. the value of the index in the base year
A) always equals 100. B) depends upon price and quantity that are constantly changing. C) is always greater than 100. D) depends upon what prices did the year before.