What is the most likely effect of the development of DVDs, rental movies, and online movie streaming on the movie theater industry?
A. Decreased costs of producing movies
B. Increased demand for movie theater tickets
C. Movie theater tickets become an inferior good
D. Increased price elasticity of demand for movie theater tickets
D. Increased price elasticity of demand for movie theater tickets
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Prices of California Merlot wine (assume that this is a normal good) have risen steadily in recent years. Over this same period, prices for French oak barrels used for wine storage have dropped and consumer incomes have risen
Which of the following best explains the rising prices of California Merlots? A) The supply curve for Merlot has shifted to the right while the demand curve for Merlot has shifted to the left. B) The demand curve and the supply curve for Merlot have both shifted to the left. C) The demand curve for Merlot has shifted to the right more than the supply curve has shifted to the right. D) The supply curve for Merlot has shifted to the right more than the demand curve has shifted to the right.
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:Q = a + bP +cM +dPRwhere Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and PR is the price of a related product. The results of the estimation are presented below:
Given the above, at the 1% level of significance, the critical value of the t-statistic used by Conlan to test for statistical significance has ________ degrees of freedom and is equal to ________.
A. 32; 36.14 B. 30; 2.750 C. 32; 4.57 D. 32; 0.7984 E. 28; 2.763
The data below describe the economy of Econland:Business and household saving58Government transfers and interest payments12Government purchases of goods and services25Tax collections42Public saving in Econland equals:
A. 5 B. -5 C. 17 D. 16
Financial markets enable the transfer of risk by:
A. making sure that higher default risk is offset by greater liquidity. B. enabling even unsophisticated investors to purchase highly complex financial instruments. C. requiring that risk-averse investors have access to U.S. Treasury bond markets. D. allowing individuals and firms less willing to bear risk to transfer risk to other individuals and firms more willing to bear risk.