Consumers often base their spending on their estimated permanent income.
Answer the following statement true (T) or false (F)
True
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Suppose the price of a ticket to a Lenny Kravitz concert is $41 and at that price, the quantity of tickets demanded is 17,000 per concert
Using the midpoint method of calculating percentage changes, if Mr. Kravitz raises the price to $48 and the quantity demanded decreases to 16,000, the price elasticity of demand for his concert tickets is A) 15.73. B) 6.06. C) 1.00. D) 0.39. E) 0.93.
Explain how the prisoners' dilemma can be used to examine pricing strategies in an oligopoly
What will be an ideal response?
Military spending is a good example of an automatic stabilizer
a. True b. False Indicate whether the statement is true or false
Suppose a friend claims he is helping the economy by throwing trash on the street rather than in trash cans because the extra expenditures necessary to clean up the streets will increase GDP. Your friend is
A. Wrong. GDP will not be affected because this is not a socially desirable use of resources and will therefore not be included in GDP. B. Right. GDP will increase, ceteris paribus. C. Wrong. GDP will not be affected because nothing new is being produced. D. Wrong. GDP will decline because the neighborhood will be less clean.