Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. Based on the difference in demand elasticity of foreign visitors and local visitors, the optimal strategy for the temples to maximize revenue is to
A. charge the same price to foreign visitors and to local residents.
B. not charge for admission and rely instead on donations from both local residents and foreign visitors.
C. charge a lower price to foreign visitors than to local residents.
D. charge a higher price to foreign visitors than to local residents.
Answer: D
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Using the information in the table above, what does the slope of the line between x and y equal?
A) 5 B) -0.5 C) 2 D) -2
Legislators often have difficulty passing legislation with widespread benefits, but that imposes concentrated costs because those who bear the costs will __________ the legislation, while those who would reap the benefits will __________ the legislation
a. protest; actively support b. not protest; not actively support c. not protest; actively support d. protest; not actively support e. protest; protest
Assets that a company might not be able to convert to cash quickly but that still have significant value (e.g., factory building, real estate, machinery) are known as
a. liquid assets b. hard assets c. corporate assets d. marketable securities e. none of these
The money supply decreased and the AD curve shifted to the left. This is consistent with the
A) Keynesian transmission mechanism when there is neither a liquidity trap nor interest-insensitive investment. B) monetarist transmission mechanism. C) Keynesian transmission mechanism when there is a liquidity trap. D) Keynesian transmission mechanism with interest-insensitive investment. E) a and b