The local symphony recently raised its price for tickets to their summer concerts in the park. At the end of the summer season, the symphony was surprised to see that total revenue had actually decreased. The reason was that the elasticity of demand for tickets was
a. unit elastic.
b. inelastic.
c. elastic.
d. Not enough information is given.
c
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If a good is inferior in an economic sense:
a. it is demand price elastic. b. it is demand price inelastic. c. the income elasticity of demand is negative. d. it is a low-quality good. e. it is not the highest quality good in its class.
Union contracts with built-in cost-of-living adjustments and home mortgages that vary with the rate of inflation are:
A. examples of failed policies of the 1970s. B. examples of bracket creep. C. means of implementing fiscal policy. D. steps that can be taken to decrease the adverse impacts of inflation.
The social costs of an activity are greater than the private costs of the activity when
A) a person does not pay all costs associated with a particular resource-using activity. B) the internal costs of the resource-using activity are less than the external costs of the activity. C) the internal costs of the resource-using activity are positive. D) the external costs of the resource-using activity are zero.
Suppose that real GDP for 2017 was $10,000 billion and real GDP for 2018 was $11,000 billion. What is the rate of growth of real GDP between 2017 and 2018?
A) 1% B) 2% C) 5% D) 10%