A well-known women’s college whose tuition lagged below similar schools found recruiting difficult and enrollment falling. A substantial tuition increase was implemented, and dormitories were soon full again. This can be explained by
A. the law of demand.
B. the fact that education at the school was an inferior good.
C. the fact that people sometimes base perceptions of quality on price (snob effect).
D. elastic demand.
Answer: C
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The European Commission believes that in 2016 exports of goods and services from Spain will be 22 times larger than in 2013. Irish exports are expected to have grown by 15 percent over the same period. If imports remain constant
A) the current account balance in both countries will become more positive. B) the current account balance in both countries will become more negative. C) there will be no change in the current account balance of both countries. D) in both countries the capital and financial account balance will become more positive.
Saving is disposable personal income not spent on consumption
a. True b. False Indicate whether the statement is true or false
A perfectly inelastic supply curve is vertical
a. True b. False Indicate whether the statement is true or false
In traditional economic models, homo economicus is assumed to be all of the following EXCEPT:
A. cognitively sophisticated. B. altruistic. C. highly disciplined. D. well-informed.