An economic explanation for why rock concert tickets sell at prices below the market equilibrium is that musicians
a. are not greedy.
b. want to reward their loyal fans.
c. expect that younger people, who will spend more on merchandise at the concert, are more willing to wait in long lines to buy tickets than adults.
d. expect that those who are more willing to wait in long lines to buy tickets will make a more receptive audience than those who are willing to pay a higher price.
c. expect that younger people, who will spend more on merchandise at the concert, are more willing to wait in long lines to buy tickets than adults.
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Imports are:
A) positively related to income in the rest of the world and currency appreciation. B) positively related to income in the rest of the world and currency depreciation. C) positively related to domestic income and currency appreciation. D) positively related to domestic income and currency depreciation.
In 2005, the European Union began a program to
A) reduce greenhouse gas emissions by 10 percent within 5 years. B) eliminate greenhouse gas emissions by 50 percent within 15 years. C) subsidize firms that pollute more than a given limit. D) allow the trading of carbon-dioxide permits among firms.
Generally, on a linear two-good production possibilities curve, the opportunity cost of the good measured on the vertical axis is:
A. the reciprocal of the opportunity cost of the good measured on the horizontal axis. B. one minus the opportunity cost of the good measured on the horizontal axis. C. the negative of the opportunity cost of the good measured on the horizontal axis. D. the absolute value of the slope of the production possibilities curve.
Answer the following questions true (T) or false (F)
1. RJR Nabisco has three alternatives for manufacturing snack foods: • Option 1: Manufacture cookies alone and obtain a profit of $30 million. • Option 2: Manufacture chips alone and obtain a profit of $25 million. • Option 3: Manufacture both cookies and chips and obtain a profit of $35 million. Given the information above, the opportunity cost of this firm is $30 million. 2. The number of U.S. farms is on the order of 4 million at present. 3. The value of any index for the reference or base year is always 1.