Social welfare functions require that a society has at least three people living in it.

A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.65 . The administration is considering a tuition increase to help balance the budget. The revenue-maximizing decision is to

a. decrease tuition, which should boost enrollment enough to balance the budget. b. decrease tuition, which would bring in more revenue. c. leave tuition as is-an increase would not help balance the budget. d. increase tuition, which would generate more revenue.

Federal Reserve increases in the Federal Funds rate in 2005 had little immediate impact upon the overheated housing market because

A. the yield curve became more steeply upward-sloping. B. long-term interest rates and short-term interest rates do not always move in lockstep. C. long-term interest increased as short-term interest rates increased. D. all of the options are correct.