Suppose a graph is drawn to show a consumer's preferences for football tickets and basketball tickets. The quantity of football tickets is measured on the horizontal axis
If the price-consumption curve is horizontal when the price of football tickets changes, then A) football tickets are an inferior good.
B) the demand for football tickets is perfectly elastic.
C) the demand for football tickets is unit elastic.
D) the demand curve for football tickets will be horizontal.
C
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Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that we observe Krystal staying open 2 hours per day
If she is following the marginal principle, what must her marginal benefit be? A) $6 B) $12 C) $15 D) $18
A common source of diseconomies of scale is the
A) diminishing marginal returns to capital. B) diminishing marginal returns to labor. C) diminishing marginal returns to land. D) growing complexity of management and organizational structure.
From the U.S. perspective, a drop in the price of foreign exchange means that
a. fewer U.S. dollars are needed to purchase foreign currency b. more U.S. dollars are needed to purchase foreign currency c. worldwide, imports will become more expensive d. worldwide, exports will become cheaper e. transaction costs on international markets will decrease
The incomes of corporate managers are included in the category of corporate income in national income accounting
Indicate whether the statement is true or false