Other things constant, if tuition at a private university rises from $40,000 to $45,000 and revenue for the university decreases, the demand for the good must be
A) increasing.
B) inelastic.
C) unit elastic.
D) elastic.
D
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If a private wage contract is agreed upon with a cost of living adjustment such that wage hikes are equal to increases in the CPI,
A) the employer benefits because wages will rise less than the change in actual prices. B) workers exactly keep pace with changes in the cost of living. C) workers benefit because the CPI increases more rapidly than does the cost of living. D) the CPI bias means that workers benefit if the price level rises and the employer benefits if the price level falls. E) the CPI bias means that workers benefit if the price level falls and the employer benefits if the price level rises.
Marginal external costs are
a. additional unpriced costs imposed on society by producing one more unit of a good b. the cost of damaged goods c. the additional cost of imported goods d. the total cost to society of producing a good e. the marginal cost divided by the marginal revenue
The marginal propensity to consume (MPC) is the change in consumption divided by the change in disposable personal income
a. True b. False Indicate whether the statement is true or false
Moral hazard is a problem for the insurance industry
a. True b. False