The town of Harmonia gives away all 500 tickets to its annual Founder's Day Free Concert-in-the-Park to local residents
Each year, more than 500 people wish to attend the concert, so some of the residents who receive the free tickets sell them for as much as $75 each. Is a transaction where someone pays a resident $75 for a "free ticket" economically efficient?
A) Yes, it was a voluntary exchange that benefited both parties.
B) No, the buyer paid too much for the ticket.
C) No, people should never be allowed to sell items they received for free.
D) Yes, but it is efficient only from the perspective of the seller and not from the perspective of the buyer.
A
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The government proposes a tax on halogen light bulbs. Sellers will bear the entire burden of the tax if the
A) demand curve for halogen bulbs is vertical. B) demand curve is downward sloping and the supply curve is upward sloping. C) supply curve of halogen bulbs is horizontal. D) demand curve for halogen bulbs is horizontal.
Explain how advances in technology are critical to sustaining economic growth, even if capital per hour worked is consistently increasing. Provide a graph of a per-worker production function to support your answer
What will be an ideal response?
Which of the following is NOT considered one of the four groups in the Federal Reserve System?
A) Federal Reserve banks B) Federal Deposit Insurance Corporation C) Board of Governors D) Federal Open Market Committee
Larger budget deficits and tighter money tend to produce higher interest rates, a smaller share of investment in GDP, and slower growth.
Answer the following statement true (T) or false (F)