Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?
What will be an ideal response?
An amusement park would switch pricing strategies if it thought the new pricing strategy would increase revenues and profits. The switch could possibly reduce the costs of collecting revenue as well because tickets do not have to be collected at the entrance to each ride.
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Assuming that Yd = $20,000 and C = $22,000, we would find that the average propensity to consume would be equal to
A) 0.8. B) 1.8. C) 1.1. D) 0.9.
Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 5 percent. In 14 years, Country A's GDP will be approximately ____ that of Country B
a. one-fourth b. one-half c. double d. triple
Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to
a. hold greater excess reserves than socially desirable during a recession b. create insufficient money when the economy is at full employment c. engage in money creation opportunities when the economy is in a recession d. hold no reserves when the economy is in a recession e. lend the least possible amount when the economy is at full employment
The market solution to structural unemployment, according to structural stagnationists, should include a:
A. lower reservation wage so that workers can be rehired and make firms more competitive. B. rise in inflation to make government begin to run contractionary policy. C. higher reservation wage so that workers will earn more income. D. combination of higher and lower reservation wages, dependent upon the rate of inflation.