In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players
Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services. A) perfect competitors
B) monopolistic competitors
C) a monopsonistic cartel
D) a monopoly
C
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Suppose the relative price of Ford F150 pickup trucks has risen over the past decade. Yet, even at the higher price, more F150 pickups have been sold. What would an economist conclude?
A) The supply of F150 pickups is downward-sloping. B) The demand for F 150 pickups is upward-sloping. C) Buyers of F150 pickups are acting irrationally. D) All of the above are true. E) None of the above is true.
For a rational consumer, the consumer’s surplus will never be a negative number.
Answer the following statement true (T) or false (F)
What will happen to the demand for reserves if real GDP increases?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.
Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50 percent chance that it will be colder than average next year, and a 25 percent chance that it will be warmer than average. If you purchase two shares of XYZ stock and no shares of ABC stock, your expected gain will be ________.
A. $20 B. $30 C. $10 D. $0