Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,
A) total welfare would increase, but consumer surplus would decrease.
B) total welfare and consumer surplus would increase.
C) total welfare would decrease, but consumers surplus would increase.
D) total welfare and consumer surplus would decrease.
B
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Why did the Fed shift its policy target towards the federal funds rate
What will be an ideal response?
An open market sale of securities will tend to cause
A) a reduction in the supply of central bank money. B) a reduction in the demand for currency. C) a reduction in the demand for reserves. D) none of the above
The government raises gasoline taxes as part of the price of gasoline and receives more tax revenues. However, after five years, the government discovers that revenues from the gasoline tax have declined. This situation would be most likely to occur if
A. the long-run elasticity of demand was greater than the long-run elasticity of supply. B. the demand for gasoline was perfectly inelastic in both the short run and the long run. C. the long-run elasticity of supply was much greater than the long-run elasticity of demand. D. the demand for gasoline was inelastic in the short run, but elastic in the long run.
Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow. 
Figure 8.5 Refer to Figure 8.5. If two drones are produced, average fixed costs are
A. $10. B. $20. C. $25. D. $50.