Though the owners of NFL and MLB teams may be able to show that they lose money each year, economists who study the subject insist that they
A. lose the same amount as they do in their other businesses.
B. lose money only if they lose games.
C. are using phony accounting tricks to come up with those losses, and that every franchise makes money.
D. still make money because they can sell their team for much more than they paid for it.
Answer: D
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The substitution bias in the consumer price index refers to the idea that consumers ________ the quantity of products they buy in response to price, and the CPI does not reflect this and ________ the cost of the market basket
A) change; underestimates B) do not change; overestimates C) change; overestimates D) do not change; underestimates
The Bretton Woods system lasted from
A) 1801 to 1861. B) 1863 to 1914. C) 1945 to 1971. D) 1981 to 1993.
Moral hazard would lead to
a. Only risky drivers buying insurance b. More risky drivers buying more insurance c. Drivers taking on a lot more risk after buying insurance d. Drivers becoming a lot more careful after buying insurance
In the short run, product differentiation enables firms in monopolistically competitive markets to:
A. produce a good for which there are exact substitutes. B. produce a good which is standardized. C. price the good at marginal cost. D. earn a positive economic profit.