If the owner of a local movie theater wanted to increase the theater's total revenue from movie admissions, what should the owner do with ticket prices?
What will be an ideal response?
If moviegoers' demand is elastic, the owner should lower prices. If the demand is inelastic, the owner should raise prices. If the demand is unit elastic, price changes have no effect on total revenue.
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When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by
A) creating new jobs to hire workers who lost their jobs because of NAFTA. B) setting aside funds to support and retrain workers who lost their jobs because of NAFTA. C) reducing tariffs. D) imposing quotas.
A command system is a
A) method of organizing production that uses a market-like mechanism inside the firm. B) method of organizing production that uses a managerial hierarchy. C) set of rules that induce an agent to act in the best interest of a principal. D) method of production that implements an assembly-line process.
Who will bear the burden of a $0.05 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P?
A) Consumers pay $0.30 of the tax, bearing the burden. B) Consumers pay $0.25 of the tax, bearing the burden. C) Sellers pay $0.20 of the tax and bear the burden. D) Sellers pay all of the tax and bear the burden.
Economists believe that political instability can facilitate economic development in an LDC by making its citizens more open to change and new technology
Indicate whether the statement is true or false