If the bus fare of a city increases from $1.00 to $1.10 per ride and as a result total revenue increases, then we know that
A) percentage change in fare is less than percentage change in number of rides.
B) percentage change in fare is greater than percentage change in number of rides.
C) percentage change in fare is equal to the percentage change in number of rides.
D) it is impossible to tell.
Answer: B
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A) maximize joint revenue. B) maximize joint profit. C) behave independently. D) increase consumer surplus.
An open capital market affects a nation's economic growth by
a. channeling capital into productive projects and away from wasteful projects. b. rewarding investors who find the most productive projects and invest in them. c. making the lowest-cost capital available from around the world. d. all of the above.
Which of the following would serve to reduce the costs caused by the variability of inflation?
A) seignorage B) bracket creep C) a higher capital gains tax D) indexed wages E) none of the above
The demand for gasoline in the short run is
A) elastic because people can easily switch to public transportation. B) perfectly inelastic because people have no choice but to buy gasoline. C) unit elastic because people tend to consume a stable amount of gasoline per period. D) inelastic because there are very few good substitutes for gasoline.