The town of Bloomfield is well known for its basketball team. The price of basketball game tickets is determined by market forces. Table 6-8 above shows the demand and supply schedules for basketball games tickets. Refer to Table 6-8. What is the most distinctive feature of the supply curve?
A) The supply curve is perfectly elastic.
B) The supply curve is horizontal.
C) The supply curve is perfectly inelastic.
D) The supply curve is upward sloping.
Answer: C) The supply curve is perfectly inelastic.
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If the Fed wanted to use all of its policy variables to decrease the supply of money, which of following would that include? a. Increasing its open market sales of government securities. b. Increasing the required reserve ratio
c. Decreasing the interest rate it pays banks on bank reserves. d. It would include all of the above.
A tax placed on imports is known as
A. tariff. B. quota. C. voluntary restraint agreement. D. infant industry.
According to economic theory, a monopolist would hire a lobbyist only if the expected marginal benefit of lobbying exceeded the marginal cost.
Answer the following statement true (T) or false (F)
If a decrease in income leads to a decrease in the demand for ice cream, then ice cream is
A) a normal good. B) a neutral good. C) a complement. D) a necessity.