The demand for a movie ticket is probably _________________ than is the demand for a Broadway show ticket because ______________.
A. less price elastic; a movie ticket requires a smaller portion of one's income.
B. more price elastic; a movie ticket requires a smaller portion of one's income.
C. less price elastic; a movie ticket has fewer available substitutes.
D. more price elastic; a movie ticket has fewer available substitutes.
A. less price elastic; a movie ticket requires a smaller portion of one's income.
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The real business cycle theory is based on all of the assumptions below EXCEPT
A) flexible wages. B) flexible prices. C) pure competition. D) small menu costs.
Suppose the natural unemployment rate is 4 percent and the expected inflation rate is 6 percent. In the figure below, illustrate the long-run Phillips curve
What does the long-run Phillips curve reveal abut the long-run tradeoff between inflation and unemployment?
In the above figure, the deadweight loss due to the tax is
A) $1,000. B) $2,000. C) $4,000. D) $8,000.
Suppose China can produce 200 TVs or 200 DVD players. South Korea can produce either 100 TVs or 200 DVD players. In terms of TV production, we can conclude that
A. China has an absolute advantage in TV production. B. China has a comparative advantage in TV production. C. South Korea has a comparative advantage in TV production. D. South Korea has an absolute advantage in TV production.