The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 ? 0.41 ln P + 0.5 ln M ? 0.33 ln A + 100 ln PDVD, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and PDVD = price of a DVD rental. It is known that P = $5.50, M = $9,000, A = $900, and Pvcr = $3.00. Based on the information given, which of the following statements is false?
A. Movies are normal goods.
B. The advertising elasticity of demand for movie tickets is ?0.33.
C. Advertising decreases the demand for movie tickets.
D. Movies are complements for DVD rentals.
Answer: D
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An export good is a good produced
A) in the United States and sold in other countries. B) in the United States and sold to foreigners living in the United States. C) in another country and purchased by U.S. residents. D) by foreigners in the United States and purchased by U.S. households. E) in another country and purchased by foreigners not residing in the United States.
A public good is
a. any good provided by government. b. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. c. a good whose benefits cannot readily be restricted to a small group of people. d. a good whose benefits cannot be enjoyed by an individual alone.
Cars produced by General Motors in Mexico would be included in U.S. Gross domestic product.
Answer the following statement true (T) or false (F)
As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are:
A. the same. B. higher. C. lower. D. higher and more variable.