The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $75. The equilibrium price for a ticket to the circus at the arena is $25. Which of the following is true?
A. The demand for each basketball game must be more than the demand for each circus performance.
B. The demand for each circus performance must be greater than the demand for each basketball game.
C. The supply of circus performances must be less elastic than the supply of basketball games.
D. Basketball games must be more expensive to produce than a circus performance.
Answer: A
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Use the above table. Assuming constant opportunity costs, the opportunity cost of producing coffee in country Alpha is ________, and the opportunity cost of producing coffee in country Beta is ________
A) 0.33 ton of cookies; 2 tons of cookies B) 3 tons of cookies; 0.5 ton of cookies C) 0.375 ton of coffee; 2.25 tons of cookies D) 2.67 tons of cookies; 0.44 ton of coffee
Which of the following is NOT considered to be a benefit of unionism?
A) increased featherbedding B) greater workplace safety C) higher workforce stability D) provision of arbitration and grievance procedures
Government can intervene in the market through
a. Price floors b. Price ceilings c. Taxes d. All the above
With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would conclude:
A. the policy was effective, since surplus gained by consumers through lower prices is greater than the surplus they lost through deadweight loss.
B. the policy was ineffective, since surplus gained by consumers through lower prices is less than the surplus they lost through deadweight loss.
C. the policy was effective, since surplus lost by producers through lower prices is less than the surplus gained by consumers through lower prices.
D. the policy was ineffective, since the amount of deadweight loss is greater than the surplus gained by consumers from lower prices.