If the absolute price elasticity of demand for movie tickets is 0.80, an increase in ticket prices will
A) increase total revenue.
B) decrease total revenue.
C) not change the elasticity of demand.
D) not change total revenue.
Answer: A
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Moving along the aggregate expenditure (AE) curve, when real GDP increases, aggregate planned expenditures increase
A) by the same percentage as does real GDP. B) by more than real GDP. C) proportionately with real GDP. D) by the same amount as does real GDP. E) by less than real GDP.
When the average variable cost curve is upward sloping, what must be true about the marginal cost curve?
A) It is U-shaped. B) It is above the average variable cost curve. C) It is upward-sloping. D) It is below the average variable cost curve. E) It is a straight line.
When disposable income is 6,000, consumption is
A. 4,000.
B. 4,500.
C. 5,000.
D. 5,500.
The field of macroeconomics developed when economists looked for causes of:
A. the wealth of nations. B. the Great Depression C. poverty and inflation. D. World War I.