John moved his office from a building he was renting downtown to the carriage house he owns in back of his house. How will his costs change?
a. explicit and implicit costs rise
b. explicit costs rise; implicit costs fall
c. explicit and implicit costs fall
d. explicit costs fall; implicit costs rise
e. not enough information is given
D
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Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.
If the real value of your savings is decreasing over time, we know that the:
A. real rate of interest is positive. B. inflation is zero. C. real rate of interest is negative. D. real rate of interest is zero.
A budget deficit
a. occurs when government receipts are less than spending. b. occurs when government spending is less than receipts. c. occurs when government receipts are equal to spending. d. is the accumulation of years of government overspending.
If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is:
A. elastic. B. unit elastic. C. inelastic. D. perfectly inelastic.