You are in the line to go see a movie when you suddenly realized you have lost your ticket. It would cost you $10 to buy a new ticket. Now you are deciding whether to buy a new ticket or not. Assuming you have enough money to buy a new ticket, you would always buy the new ticket as long as:
A. your reservation price for it is equal or larger than $20.
B. your reservation price for it is equal or larger than $10.
C. the new ticket is less expensive than the first.
D. the new ticket is free.
Answer: B
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A natural oligopoly occurs when
a. few firms can afford to compete in the industry b. the minimum efficient scale is a large fraction of the market c. there are a large number of buyers and sellers of a standardized product d. minimum efficient scale is greater than total market demand at the price equal to minimum long run average total cost e. competitive pricing drives firms from the market
In determining the number of persons who are poor in the U.S. when calculating family income
A. only earnings are counted. B. only earnings are counted, while cash transfers from the government are excluded. C. money income, including cash transfers received from the government, is counted. D. both earnings and the value of medical services, food stamps, and housing received are counted.
An increase in our production possibilities is known as:
A. Inflation. B. Crowding out. C. GDP per capita. D. Economic growth.
In a market system, relative scarcities of resources are indicated by
A. surpluses. B. relative market prices. C. supply and demand being out of equilibrium. D. excess demand and excess supply.