Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).According to the Application, the reason why the consumer surplus still increases as cable prices rise after satellite TV service is introduced in an area with cable TV service is:
A. the quality of services improves and is larger than the increase in the price of cable services.
B. the quality of services improves and is smaller than the increase in the price of cable services.
C. the tax revenues that the government receives are larger than the price increase.
D. the tax revenues that the government receives are smaller than the price increase.
Answer: A
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The above table shows production combinations on a country's production possibilities frontier. What is the opportunity cost of one unit of Y when the production of good Y increases from 16 to 28 units?
A) 4 units of good X per unit of good Y B) 3 units of good X per unit of good Y C) 1/4 unit of good X per unit of good Y D) There is no opportunity cost when moving from one point to another along a production possibilities frontier.
According to the Pew Charitable Trust methodology for identifying the middle class, the bottom end of the middle class is ________ of median family income, and the top end is ________.
A. 67%; 200% B. 50%; 150% C. 100%; 200% D. 40%; 60%
The fact that people prefer present consumption to future consumption results in:
A. an upsloping supply of loanable funds curve. B. a downsloping demand for loanable funds curve. C. a downsloping supply of loanable funds curve. D. an upsloping demand for loanable funds curve.
In GDP calculations, the work of stay-at-home parents is
A. counted only for equivalent hours. B. counted as intermediate inputs. C. not counted. D. counted at 50%.