Explain why movie theaters charge more for evening performances than for matinees.
What will be an ideal response?
If prices were the same at all times, most customers would come to evening shows, and afternoon shows would be empty. By charging less in the afternoon, theaters can better fill their seats without having to expand to handle evening crowds while the building is deserted in the afternoon.
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Answer the following statement(s) true (T) or false (F)
1. A Pigou tax forces car manufacturers to internalize the cost of pollution. 2. Cap and Trade is so named because the government puts a “cap” on the amount of exports that domestic firms are allowed to “trade” with foreign nations. 3. A Cap and Trade system is more prone to error than a Pigou tax. 4. Pigou taxes are unnecessary in the presence of transaction costs. 5. Pigovian analysis indicates that a subsidy should be awarded when economic activity creates social benefits.
Refer to Figure 3-2. A technological advancement would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Which of the following statements about U.S. unemployment is true?
a. All racial groups experience approximately the same rate of unemployment. b. Black and white teenagers experience equally high rates of unemployment. c. Blacks as a group experience higher rates of unemployment than do white teenagers. d. Blacks experience higher rates of unemployment than do Hispanics. e. White teenagers experience higher rates of unemployment than do any other group in the population.
Education is
A. generally financed at the state and local level. B. too expensive for the federal government. C. generally financed at the federal level. D. financed on a voluntary basis.