The Indianapolis Motor Speedway hosts the Indianapolis 500 and the Brickyard 400, in addition to other races. During their respective peaks, both events were sellouts. The 2009 through 2011 versions of the Brickyard 400 saw 100,000 or more empty seats. It would have been in that owner's best interest to
A. reduce ticket prices so that sellouts would resume.
B. set the ticket price to where MC=MR, which may mean that there would not be a sellout.
C. spend money to reduce seating.
D. spend as much money on advertising as necessary to ensure a sellout.
Answer: B
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The ownership of radios increased from ___ percent in 1920 to ___ percent in 1930
a. 10; 70 b. 5;10 c. less than one; 40 d. Radio was not popularized beyond hobbyists until the 1930s
There are several conditions that justify limiting imports to ensure the survival of the "infant industry," and to justify government protection. Which of the following is(are) a justification?
I. Knowledge spillovers should be likely. II. Protected firms should have a good chance of moving down along their average cost curves over time to become competitive at world prices. III. Protected firms should have a good chance to reduce future costs and cause their average cost curves to shift downwards. a. I b. II c. I and III d. I, II, and III
When the price level falls
A. there is no impact on imports or exports, so there is no associated movement along the aggregate demand curve. B. imports decrease and exports increase, which cause a movement down along the aggregate demand curve. C. imports increase, and exports decrease, which causes a movement up along the aggregate demand curve. D. imports decrease and exports increase, which cause a movement up along the aggregate demand curve.
If producers have an expectation of higher future prices, the supply of the good that is currently available
A) will be all that is produced. B) will decrease. C) will not change. D) will increase.