Can ticket “scalping” be justified? Explain using economic analysis
Please provide the best answer for the statement.
Ticket “scalping” refers to the practice of reselling tickets at a price higher than stated on the ticket. This economic activity often occurs with athletic and artistic events. It can be justified for several reasons. First, ticket resale’s are voluntary—both buyer and seller must feel that they gain or they would not agree to the transaction. Second, scalping simply redistributes tickets from those who value them less than money to those who value them more than the money they’re willing to pay. Third, sponsors of the event may be injured, but if that is the case, they should have priced the tickets higher. Fourth, spectators are not hurt because those who want to go the most to the event are getting the tickets. In summary, both seller and buyer benefit and event sponsors are the only ones who may lose, but that is due to their own error in pricing and they would have lost from this error whether or not the scalping occurred.
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Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production. B) Points a and b are obtainable points of production. C) Points b and c are obtainable points of production. D) Only point b is an obtainable and efficient point of production.
When there is an interval between when the fiscal policy changes and corresponding changes in aggregate spending, we have a(n)
A) aggregate time lag. B) action time lag. C) recognition time lag. D) effect time lag.
Refer to the graph below. The long-run average change in real GDP is shown by
a. the Growth trend line.
b. the contraction.
c. the expansion.
d. the peak.
A _____________ person would rather have a definite lower income than take a risk which entails the same expected value
Fill in the blank(s) with the appropriate word(s).