Ethan enjoys buying books and going to the movies. He has income of $150 to spend on these two goods each month. The price of a book is $15 and the price of going to the movies is also $15. He currently consumes four books and six movies a month. If the price of a book drops to $10, the substitution effect would predict:
A. Ethan would consume more of each good.
B. Ethan would consume less of each good.
C. Ethan would consume more books and fewer movies.
D. Ethan would consume fewer books and more movies.
C. Ethan would consume more books and fewer movies.
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In the United States, estimates of the natural rate of unemployment in recent years have varied between
A) 0 percent and 2 percent. B) 0 percent and 4 percent. C) 5 percent and 6.5 percent. D) 2 percent and 4 percent.
In the linear breakeven model, the breakeven sales volume (in dollars) is equal to fixed costs divided by:
a. unit selling price less unit variable cost b. contribution margin per unit c. one minus the variable cost ratio d. a and b only e. a, b, and c
If the price of a good rises, then the equilibrium consumption of that good:
A. decreases if it is a normal good. B. increases if it is an inferior good. C. remains the same. D. None of the statements is correct.
Preferred Budgets ($ in millions)567891011Number of voters (in thousands)61016201595Table 15.2Table 15.2 shows the preferred budget for a new civic center and the number of voters in a community who prefer that budget. If Jay proposed $6 million while David proposed $10 million, Jay will get ________ thousand votes while David gets ________ thousand votes.
A. 32; 29 B. 42; 39 C. 52; 29 D. The outcome cannot be predicted.