Suppose an increase in symphony tickets prices reduces the total revenue. This is evidence that demand is:
a. price elastic.
b. price inelastic.
c. unitary elastic.
d. perfectly elastic.
a
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Checking accounts are not considered a part of M1 money supply because checks are not legal tender and are usually not accepted as a medium of exchange
Indicate whether the statement is true or false
Suppose that consumers' preferences are well behaved in that properties 4-1 to 4-4 are satisfied. Furthermore, assume that X is a normal good, Y is an inferior good, and the price of good Y decreases. Then, which of the following effects is known with certainty?
A. The income and substitution effects will have competing effects, leading to an indeterminate impact on the consumption of good Y. B. The income and substitution effects will reinforce one another, leading to an overall increase in the consumption of good X. C. The income and substitution effects reinforce one another leading to an overall decrease in the consumption of good X. D. The income and substitution effects will reinforce one another, leading to an overall decrease in the consumption of good Y. E. The income and substitution effects will reinforce one another, leading to an overall increase in the consumption of good Y.
Measures of student performance have not increased even though per-pupil government subsidies have increased because
A. parents and children value the last unit of educational services received more than the cost. B. there is a need for more funds to be spent. C. we have declining enrollment in public schools. D. parents and children value the last unit of educational services received less than the cost.
Which of the following was NOT a function of the First and Second Banks of the United States?
(a) Handling government finances (b) Promoting growth of state banks (c) Helping establish uniform paper currency in the U.S. (d) Keeping state banks in line by presenting their notes