A result of selling concert tickets cheaply, that is below the equilibrium price, will be that
a. only those with nothing else to do will wait in line to buy a ticket.
b. ticket buyers' benefits increase, at the expense of the performers.
c. the costs associated with competition among buyers for the limited number of tickets will create deadweight losses.
d. more tickets will be sold than if the price were at the market equilibrium.
c. the costs associated with competition among buyers for the limited number of tickets will create deadweight losses.
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Refer to the scenario above. Suppose the decision to levy a tax on emission of greenhouse gases costs 500 utils in present value and that the discount weight attached to the future benefit is 1/17
In this case, the net benefit earned by the people is: A) -300 utils. B) -441.18 utils. C) 333.65 utils. D) 420 utils.
In Gordon's early presentation of the IS-LM and AD/SRAS/LRAS models, macro policy was assumed to have ________ effects on aggregate demand
A) immediate and certain B) immediate but uncertain C) delayed but certain D) delayed and uncertain
According to Hughes and Cain (2011), American economic history is the story of economic growth. Economic growth
(a) necessarily means an improvement in the quality of life for all individuals. (b) does not necessarily measure an improvement in the quality of life; it merely indicates the potential for improvement. (c) as conventionally measured considers an employed person living in the pollution and congestion of modern Tokyo to be "worse off" than a sun-tanned artist watching another glorious sunset on the beach in Tahiti. (d) is measured by the increases in total output of goods and services less any environmental destruction that occurs in the process of production.
Which of the following reduces U.S. potential for economic growth by reducing household incentive to use private property most efficiently and effectively?
(a) Personal income taxes (b) Farm subsidies and import tariffs (c) Auto bailouts (d) Regulation in the health care industry