The local symphony recently raised its price for tickets to their summer concerts in the park. At the end of the summer season, the symphony was surprised to see that total revenue had actually decreased. The reason was that the elasticity of demand for tickets was
A. unit elastic.
B. inelastic.
C. elastic.
D. Not enough information is given.
Answer: C
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Sam has $200 a month to spend on either tanning sessions or rounds of golf. Tanning sessions are $20 each, and a round of golf is $40. What can we say about Sam's utility?
A. Sam will get more utility from each round of golf than each tanning session. B. Sam will get the same utility from one round of golf as he would from two tanning sessions. C. Sam will maximize his utility from 2 rounds of golf and 6 tanning sessions. D. We cannot say anything about Sam's utility from the consumption of these goods without more information.
In the mid-1980s, in which communist country did the credo change from "From each according to his ability, to each according to his needs" to "More pay for more work, less pay for less work"?
A. The Soviet Union B. Vietnam C. Cuba D. China
Which of the following arguments do the following graphs best support in the context of a skill-biased technical change?
a. The efficiency wage model is correct.
b. A minimum wage increases unemployment.
c. Greater productivity leads to higher wages.
d. Unemployment insurance increases unemployment.
Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $200 B. $150 C. $100 D. $75