If the cross-price elasticity between ketchup and hamburgers is ?2.5, a 2 percent increase in the price of ketchup will lead to a:
A. 5 percent drop in quantity demanded of hamburgers.
B. 5 percent drop in quantity demanded of ketchup.
C. 5 percent increase in quantity demanded of hamburgers.
D. 5 percent increase in quantity demanded of ketchup.
Answer: A
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The instructor of your wine tasting class trips and falls while discussing the merits of spitting out the wine samples after you have tasted them instead of swallowing them, so as not to get inebriated during the class
You are afraid that he might have hurt himself in the fall, but since no one else in the class is rushing up to help him, you mistakenly believe that the rest of the class thinks the instructor is trying to prove a point about drinking too much in the class. You therefore doubt your own judgement and decide to also not get up to help the instructor back to his feet. This is an example of A) diffusion of responsibility. B) pluralistic ignorance. C) mob mentality. D) passing the buck.
In an economy in which real output grows at an average rate of 3 percent per year, a 7 percent average rate of growth in the money supply would result in
a. an inflation rate of 4 percent, if velocity were constant. b. an inflation rate of -4 percent, if velocity were constant. c. a $4 increase in the price level per year. d. a $4 decrease in the price level per year.
How much would consumers in the figure below spend to persuade politicians to regulate the monopoly's price to marginal (or average) cost? 
A. $0 B. $8 C. $24 D. $16
The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?
A. The supply of baseball games must be less elastic than the supply of football games. B. The demand for each baseball game must be lower than the demand for each football game. C. Football games must be more expensive to produce than baseball games. D. The demand for baseball games must be more elastic than the demand for football games.