If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is
a. elastic
b. unit elastic
c. inelastic
d. perfectly inelastic
e. 10
C
You might also like to view...
What are the five main determinants of consumption spending? Which of these is the most important?
What will be an ideal response?
Why is it true that domestic product and national income must be equal?
a. The IRS national accounting system assures that taxes equal total income. b. The total amount of spending must equal total national sales. c. The value of final product must equal the sum of resource income that produced it. d. The total amount of income earned is eventually spent.
Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance. All else equal, a person who is unhealthy and expects to have high healthcare costs will:
A. stop going to the doctor. B. prefer to work for ApathyInc. C. be equally happy working for either firm. D. prefer to work for CareCo.
Developing countries do:
A. compete with one another for foreign investment, and this competition reduces the benefits from foreign investment. B. not compete with one another for foreign investment, because they have sufficient domestic saving to finance their investment needs. C. not compete with one another for foreign investment, because they lack the infrastructure to attract it in the first place. D. compete with one another for foreign investment, but this competition is beneficial to developing countries because it insures a more efficient allocation of resources.