Suppose an increase in symphony tickets prices reduces the total revenue. This is evidence that demand is:
A. price elastic.
B. price inelastic.
C. unitary elastic.
D. perfectly elastic.
Answer: A
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A severe drought has damaged this year's lettuce cro
A) decrease in the demand for lettuce. B) decrease in the supply of lettuce. C) decrease in both the demand and supply of lettuce. D) rightward movement along the demand curve for lettuce.
A minimum wage set above the equilibrium wage rate is a price
A) ceiling that results in a shortage of low-skilled labor. B) ceiling that results in a surplus of low-skilled labor. C) floor that results in a shortage of low-skilled labor. D) floor that results in a surplus of low-skilled labor.
The U.S. claimed a disproportionate share of world trade given its share of the world's population
Indicate whether the statement is true or false
If the U.S. were to revert to a gold standard, trade deficits would:
A. result in gold reserves in the U.S. decreasing. B. result in high inflation. C. quickly disappear. D. result in lower domestic interest rates.