Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. The CFO of Redbox wants to identify how responsive consumers are to an increase or decrease in the daily price of a rental
The economic concept the CFO wants to understand is A) price elasticity of demand.
B) elasticity of supply.
C) changes in demand.
D) changes in supply.
A
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If a student achieves a high SAT score, this
A) sends a signal to a college that the applicant will be a good college student. B) does not act as a screening device. C) is a moral hazard. D) provides a college with no information.
An increase in demand and an increase in supply will lead to
A) unambiguous increases in both price and quantity. B) unambiguous decreases in both price and quantity. C) an unambiguous increase in quantity, but the effect on price is indeterminate. D) an unambiguous increase in price, but the effect on quantity is indeterminate.
The major difference between the Keynesian approach and the monetarist approach is that
a. Keynesian analysis explains an equilibrium condition and monetarism does not. b. in Keynesian analysis, money affects the economy by first affecting interest rates; monetarist analysis is not limited to working through interest rates. c. monetarism explains an equilibrium condition and Keynesian analysis does not. d. there are no differences.
If business opportunities in a country become relatively less attractive relative to those of other countries, then
a. both its net exports and net capital outflows fall. b. both its net exports and net capital outflows rise. c. its net exports fall and its net capital outflows fall. d. its net exports rise and its net capital outflows fall