An article in the Wall Street Journal noted the following: Instead of relying on a full-coach, round-trip unrestricted fare of about $2,000 between Cleveland and Los Angeles ...Continental [Airlines] since June has offered a $716 unrestricted fare in
that market .... Through October, the test resulted in about the same revenue that Continental thinks it would have collected with its higher fare.
Source: Scott McCartney, "Airlines Try Cutting Business Fares, Find They Don't Lose Revenue," Wall Street Journal, November 22, 2002.
What is the absolute value of the price elasticity of demand on this airline route?
A) 0
B) less than 1
C) greater than 1
D) approximately 1
Answer: D
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The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?
A) $1,800 B) $6 C) $5 D) More information is needed to calculate the average variable cost.
_______ are outlooks or opinions that express values, serve as a means of evaluation, or demonstrate feelings in regard to ideas, people, events, situations, or relationships. They are expressions of likes and dislikes
a. Attitudes b. Resources c. Goal orientations d. Preferences
Answer the following statements true (T) or false (F)
1. Prior to 2006, the most severe trough in a U.S. business cycle since the Great Depression occurred in 1981–1982. 2. Psychological forces usually tend to moderate cyclical movements of the economy. 3. A recession is defined as a period in which real GDP is negative for two consecutive quarters. 4. Interest rates usually rise during the contraction phase of the business cycle. 5. The level of business activity at any time is affected by the trend, seasonal variations, random fluctuations, and cyclical fluctuations.
Behavioral economists attempt to take into account predictably irrational behavior.
Answer the following statement true (T) or false (F)