A university's basketball gymnasium is never more than half-full during basketball games. This implies
a. the ticket price is above the equilibrium price.
b. the ticket price is below the equilibrium price.
c. the ticket price is at the equilibrium price
d. nothing about the equilibrium price.
a
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When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold
Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model of supply and demand, illustrate what would happen to the price and quantity of tires sold. Would the amount of tax paid by the consumer (as opposed to the producer) be greater when demand is elastic or inelastic? Why?
In the long run, firms in many industries often experience falling average total costs as a result of
a. gains through trade. b. increasing marginal returns. c. economies of scale. d. lower fixed costs.
Technology is an important factor in explaining the high incomes of some athletes primarily because
a. technology accounts for differences in incomes within all occupations. b. technology makes it possible for very large numbers of people to watch athletes perform. c. technology improves the performance of athletes. d. technology requires human capital to use it efficiently.
The major determinant of an individual's income is
a. his personality-if the coworkers and the boss like him. b. if he earns a salary or if he is paid by the hour. c. how productive he is combined with demand for what he produces. d. whether or not his family is wealthy