The above figure shows the demand curve for movie rentals from Redbox. At which of the following prices is the demand unit elastic?
A) $5.00
B) $3.50
C) $2.50
D) $0.00
C
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In an experiment that employed the dictator game, economists at Cornell University gave student "allocators" the option of dividing $20 in only two ways (a) $18 for themselves and $2 to another student, or (b) $10 for themselves and $10 to anoth
student. What was one result from this experiment? A) Most allocators chose to give themselves $18 and $2 to the other students. B) A majority of the female allocators chose option (a); a majority of the male allocators chose option (b). C) Most of the allocators apparently valued acting fairly. D) Most of the students who were not allocators did not like having someone else make decisions for them.
If in some production range average cost is rising, the firm is experiencing
A. increasing returns to scale. B. decreasing returns to scale. C. constant returns to scale. D. increasing costs per unit of output.
To stabilize real GDP when the money demand curve shifts on its own, the Fed must change the money supply
a. True b. False
Under a marketing quota system,
A) the government sets a limit on the quantity of a product that a farmer is allowed to bring to market. B) farmers are paid to take part of their land out of cultivation. C) farmers are given limits as to the number of acres that can be used to produce a particular product. D) farmers are paid the difference between the market price of their product and a governmentally determined price that would maintain an established price parity. E) the government establishes a minimum price that farmers will be paid for their product, which causes the farmers to cut back on the number of acres planted.