In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this ...

In mid-2012 Delta increased the price of a New York to LA ticket by 10 percent. As a result of this price hike, there was a ________ shift in the demand curve for a ticket on Continental because the price of a ________ had risen.
 
  A) rightward; complement
  B) leftward; substitute
  C) leftward; complement
  D) rightward; substitute

---

Ques. 2

The paradox of value between diamonds and water is explained by the fact that the
 
  A) total utility of diamonds exceeds the total utility of water.
  B) marginal utility of diamonds exceeds the marginal utility of water.
  C) total utility of diamonds exceeds the marginal utility of water.
  D) marginal utility of diamonds exceeds the total utility of water.

---

Ques. 3

Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource.
 
  What will be an ideal response?

---

Ques. 4

Unions tend to ________ import restrictions and ________ a higher minimum wage.
 
  A) favor; favor
  B) favor; oppose
  C) oppose; favor
  D) oppose; oppose

---

Ques. 5

Since 1970, the world Gini ratio has ________ indicating that the world distribution of income has ________.
 
  A) risen; become more equal
  B) fallen; become more equal
  C) risen; become less equal
  D) not changed; not changed

---

Ques. 6

In the above figure, for a single-price monopolist producing at its profit-maximizing equilibrium price and quantity, the price elasticity of demand at this equilibrium will be
 
  A) greater than 1 and the monopolist's total revenue is maximized.
  B) less than 1 and the monopolist's economic profit could be larger.
  C) equal to 1 and the monopolist's total revenue is maximized.
  D) greater than 1 and the economic profit is maximized but the total revenue is not.

---

Ques. 7

In the figure above, when 40 units are produced the average fixed cost is
 
  A) 4.
  B) 8.
  C) 12.
  D) 20.

---

Ques. 8

The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. Based on the data in the table, production of fertilizer has
 
  A) external benefits.
  B) external costs.
  C) no externalities.
  D) constant returns to scale.

---

Ques. 9

If there is an inefficient level of nursing care in South America, a deadweight loss exists. Is this statement true or false?
 
  What will be an ideal response?