Selling tickets to graduation ceremonies has long been a tradition among students at institutions that limit the number of guests. Suppose your classmate, Heidi, purchased two tickets for $40 each. Is this transaction economically efficient?
A) Yes, it is efficient only from the perspective of the seller and not from the perspective of the buyer.
B) Yes, it was a voluntary exchange that benefited both parties.
C) No, people should never be allowed to sell items they received for free.
D) No, Heidi paid too much for the tickets.
B
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Which of the following is a public good?
a. Pencil. b. Apple. c. Light house. d. Gun.
If the consumer price index (CPI) in Year X was 300 and the CPI in Year Y was 325, the rate of inflation for Year Y was:
a. 325 percent. b. 25 percent. c. 5 percent. d. 8 percent.
Figure 4-14
Frustrated by the cost and ineffectiveness of the war on drugs, the U.S. government could consider "decriminalization" of the use and sale of cocaine. Critics contend that lower prices will expand drug use and that decriminalization will remove the stigma and danger from arrest associated with drug use, thus further increasing the demand and number of addicts. Which graph in Figure 4-14 best illustrates the critics' case?
a.
1
b.
2
c.
3
d.
4
An example of the opportunity to gain human capital would be:
A. a firm offering on-the-job training. B. a firm starting a community garden for its employees. C. a firm expanding and creating 20 more jobs. D. All of these are examples of human capital.