Richard Voith estimated the price elasticity of demand for round-trip rail fare to be 0.62. If fares rose by 30 percent, one would expect the quantity of round-trip tickets purchased to:
A. rise by 18.6 percent.
B. fall by 48.4 percent.
C. fall by 18.6 percent.
D. rise by 48.4 percent.
Answer: C
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Someone who turns down an opportunity to purchase a Bible for $5 and then immediately pays $5 to attend a movie thereby expects to obtain more satisfaction from seeing the movie than from
A) cultivating the spiritual life. B) deepening his religious faith. C) owning the Bible just offered to him. D) reading the Bible.
Which of the following is TRUE about the long-run aggregate supply curve?
A) It is vertical at the level of potential GDP. B) It shows the relationship between the price level and real GDP when the economy is at full employment. C) It does not shift in response to temporary changes in aggregate demand. D) All of the above are true.
In Figure 35.1, if rents are uncontrolled, then the amount that renters will want will be 
Figure 35.1
A. Q*. B. Q'. C. 0. D. Q".
If the unemployment rate for the United States economy rises from 7 to 11 percent during a year, we can conclude that:
a. Actual GDP is less than potential GDP b. The natural rate of unemployment for the United States economy has risen c. The economy is experiencing only frictional unemployment d. Actual GDP exceeds potential GDP